Bill Text: IA SF2442 | 2023-2024 | 90th General Assembly | Introduced

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Bill Title: A bill for an act relating to state and local finances by modifying individual and alternate income tax rates, withholding credits, franchise tax deductions, methodologies for determining property taxes, and property tax assessment limitations, changing methods of determining compensation of county officials, making contingent transfers from the taxpayer relief fund, and making corrections, and including effective date and applicability provisions. (Formerly SSB 3207.) Effective date: Enactment, 05/01/2024, 07/01/2024, 01/01/2025. Applicability date: 01/01/2024, 01/01/2025, 07/01/2025.

Spectrum: Committee Bill

Status: (Passed) 2024-05-10 - Fiscal note. [SF2442 Detail]

Download: Iowa-2023-SF2442-Introduced.html

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Senate File 2442 - Introduced
SENATE FILE 2442
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO SSB 3207)
(COMPANION TO HF 2705 BY
COMMITTEE ON WAYS AND MEANS)
A BILL FOR
An Act relating to state and local finances by modifying
individual and alternate income tax rates, withholding
credits, franchise tax deductions, methodologies for
determining property taxes, and property tax assessment
limitations, changing methods of determining compensation
of county officials, making contingent transfers from the
taxpayer relief fund, and making corrections, and including
effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
SINGLE INDIVIDUAL AND ALTERNATE INCOME TAX RATES BEGINNING IN
TAX YEAR 2025
Section 1. Section 421.27, subsection 9, paragraph a,
subparagraph (3), Code 2024, is amended to read as follows:
(3) In the case of all other entities, including
corporations described in section 422.36, subsection 5 , and all
other entities required to file an information return under
section 422.15, subsection 2 , the entity’s Iowa net income
after the application of the Iowa business activity ratio,
if applicable, multiplied by the top income tax rate imposed
under section 422.5A 422.5 for the tax year, less any Iowa tax
credits available to the entity.
Sec. 2. Section 422.5, subsection 1, paragraph a, Code 2024,
is amended to read as follows:
a. A tax is imposed upon every resident and nonresident
of the state which tax shall be levied, collected, and paid
annually upon and with respect to the entire taxable income
as defined in this subchapter at rates as provided in section
422.5A a rate of three and eight-tenths percent .
Sec. 3. Section 422.5, subsection 2, paragraph b, Code 2024,
is amended to read as follows:
b. (1) In lieu of the computation in subsection 1 , or
in paragraph “a” of this subsection , if the married persons’
filing jointly, head of household’s, or surviving spouse’s net
income exceeds thirteen thousand five hundred dollars, the
regular tax imposed under this subchapter shall be the lesser
of the alternate state individual income tax rate specified in
subparagraph (2) of four and three-tenths percent times the
portion of the net income in excess of thirteen thousand five
hundred dollars or the regular tax liability computed without
regard to this sentence. Taxpayers electing to file separately
shall compute the alternate tax described in this paragraph
using the total net income of the spouses. The alternate tax
described in this paragraph does not apply if one spouse elects
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to carry back or carry forward a net operating loss as provided
under the Internal Revenue Code or in section 422.9 .
(2) (a) (i) (A) For the tax year beginning on or after
January 1, 2023, but before January 1, 2024, the alternate tax
rate is 6.00 percent.
(B) For the tax year beginning on or after January 1, 2024,
but before January 1, 2025, the alternate tax rate is 5.70
percent.
(C) For the tax year beginning on or after January 1, 2025,
but before January 1, 2026, the alternate tax rate is 5.20
percent.
(ii) This subparagraph division (a) is repealed January 1,
2026.
(b) For tax years beginning on or after January 1, 2026, the
alternate tax rate is 4.40 percent.
Sec. 4. Section 422.5, subsection 3, paragraph b, Code 2024,
is amended to read as follows:
b. (1) In lieu of the computation in subsection 1 or 2 ,
if the married persons’ filing jointly, head of household’s,
or surviving spouse’s net income exceeds thirty-two thousand
dollars, the regular tax imposed under this subchapter shall be
the lesser of the alternate state individual income tax rate
specified in subparagraph (2) of four and three-tenths percent
times the portion of the net income in excess of thirty-two
thousand dollars or the regular tax liability computed without
regard to this sentence. Taxpayers electing to file separately
shall compute the alternate tax described in this paragraph
using the total net income of the spouses. The alternate tax
described in this paragraph does not apply if one spouse elects
to carry back or carry forward a net operating loss as provided
under the Internal Revenue Code or in section 422.9 .
(2) (a) (i) (A) For the tax year beginning on or after
January 1, 2023, but before January 1, 2024, the alternate tax
rate is 6.00 percent.
(B) For the tax year beginning on or after January 1, 2024,
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but before January 1, 2025, the alternate tax rate is 5.70
percent.
(C) For the tax year beginning on or after January 1, 2025,
but before January 1, 2026, the alternate tax rate is 5.20
percent.
(ii) This subparagraph division (a) is repealed January 1,
2026.
(b) For tax years beginning on or after January 1, 2026, the
alternate tax rate is 4.40 percent.
Sec. 5. Section 422.5, subsection 6, Code 2024, is amended
by striking the subsection.
Sec. 6. Section 422.16, subsection 2, paragraph e, Code
2024, is amended to read as follows:
e. For the purposes of this subsection , state income tax
shall be withheld at the highest rate described in section
422.5A 422.5 from supplemental wages of an employee in those
circumstances in which the employer treats the supplemental
wages as wholly separate from regular wages for purposes
of withholding and federal income tax is withheld from the
supplemental wages under section 3402(g) of the Internal
Revenue Code.
Sec. 7. Section 422.16B, subsection 2, paragraph a, Code
2024, is amended to read as follows:
a. (1) A pass-through entity shall file a composite return
on behalf of all nonresident members and shall report and pay
the income or franchise tax imposed under this chapter at the
maximum state income or franchise tax rate applicable to the
member under section 422.5A 422.5 , 422.33 , or 422.63 on the
nonresident members’ distributive shares of the income from the
pass-through entity.
(2) The tax rate applicable to a tiered pass-through entity
shall be the maximum state income tax rate under section 422.5A
422.5 .
Sec. 8. Section 422.16C, subsection 4, paragraph a, Code
2024, is amended to read as follows:
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a. A taxpayer making an election under this section shall
be subject to tax in an amount equal to the maximum rate under
section 422.5A 422.5 , imposed against the taxable income of the
taxpayer for the taxable year properly determined under this
chapter and allocated and apportioned to the state under the
rules adopted by the department. The tax shall be due with the
taxpayer’s return required under this chapter .
Sec. 9. Section 422.16C, subsection 5, paragraph a,
subparagraph (2), Code 2024, is amended to read as follows:
(2) The difference between one hundred percent and the
highest individual income tax rate in effect for the tax year.
Sec. 10. Section 422.21, subsection 5, Code 2024, is amended
to read as follows:
5. The director shall determine for the 2023 calendar year
and each subsequent calendar year the annual and cumulative
inflation factors for each calendar year to be applied to tax
years beginning on or after January 1 of that calendar year.
The director shall compute the new dollar amounts as specified
to be adjusted in section 422.5 by the latest cumulative
inflation factor and round off the result to the nearest one
dollar. The annual and cumulative inflation factors determined
by the director are not rules as defined in section 17A.2,
subsection 11 .
Sec. 11. Section 422.25A, subsection 5, paragraph c,
subparagraphs (3), (4), and (5), Code 2024, are amended to read
as follows:
(3) Determine the total distributive share of all final
federal partnership adjustments and positive reallocation
adjustments as modified by this title that are reported to
nonresident individual partners and nonresident fiduciary
partners and allocate and apportion such adjustments as
provided in section 422.33 at the partnership or tiered partner
level, and multiply the resulting amount by the maximum highest
individual income tax rate pursuant to section 422.5A for the
reviewed year.
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(4) For the total distributive share of all final federal
partnership adjustments and positive reallocation adjustments
as modified by this title that are reported to tiered partners:
(a) Determine the amount of such adjustments which are of a
type that would be subject to sourcing to Iowa under section
422.8, subsection 2 , paragraph “a” , as a nonresident, and then
determine the portion of this amount that would be sourced to
Iowa under those provisions as if the tiered partner were a
nonresident.
(b) Determine the amount of such adjustments which are of
a type that would not be subject to sourcing to Iowa under
section 422.8, subsection 2 , paragraph “a” , as a nonresident.
(c) Determine the portion of the amount in subparagraph
division (b) that can be established, as prescribed by the
department by rule, to be properly allocable to indirect
partners that are nonresident partners or other partners not
subject to tax on the adjustments.
(d) Multiply the total of the amounts determined in
subparagraph divisions (a) and (b), reduced by any amount
determined in subparagraph division (c), by the highest
individual income tax rate pursuant to section 422.5A for the
reviewed year.
(5) For the total distributive share of all final federal
partnership adjustments and positive reallocation adjustments
as modified by this title that are reported to resident
individual partners and resident fiduciary partners, multiply
that amount by the highest individual income tax rate pursuant
to section 422.5A for the reviewed year.
Sec. 12. RATE OF WITHHOLDING. Notwithstanding any other
provision of law to the contrary, for tax years beginning on
or after January 1, 2025, any required rate of withholding
shall not be higher than the rate for the applicable tax year
pursuant to section 422.5 as amended by this division of this
Act.
Sec. 13. REPEAL. 2022 Iowa Acts, chapter 1002, sections 19,
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20, 21, 22, 23, and 24, are repealed.
Sec. 14. REPEAL. 2023 Iowa Acts, chapter 115, sections 20
and 21, are repealed.
Sec. 15. REPEAL. Section 422.5A, Code 2024, is repealed.
Sec. 16. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2025.
Sec. 17. APPLICABILITY. This division of this Act applies
to tax years beginning on or after January 1, 2025.
DIVISION II
TARGETED JOBS WITHHOLDING CREDIT
Sec. 18. Section 403.19A, subsection 3, paragraph c,
subparagraphs (1) and (2), Code 2024, are amended to read as
follows:
(1) The pilot project city and the economic development
authority shall enter into a withholding agreement with each
employer concerning the targeted jobs withholding credit. The
withholding agreement shall provide for the total amount of
withholding credits awarded, as negotiated by the economic
development authority, the pilot project city, and the
employer. An agreement shall not provide for an amount of
withholding credits that exceeds the amount of the qualifying
investment made in the project. An agreement shall not be
entered into with a business currently located in this state
unless the business either creates or retains ten jobs or makes
a qualifying investment of at least five hundred thousand
one million dollars within the pilot project city. The
withholding agreement may have a term of years negotiated by
the economic development authority, the pilot project city,
and the employer, of up to ten years. A withholding agreement
specifying a term of years or a total amount of withholding
credits shall terminate upon the expiration of the term of
years specified in the agreement or upon the award of the total
amount of withholding credits specified in the agreement,
whichever occurs first. An employer shall not be obligated to
enter into a withholding agreement. An agreement shall not be
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entered into with an employer not already located in a pilot
project city when another Iowa community is competing for the
same project and both the pilot project city and the other Iowa
community are seeking assistance from the authority.
(2) The pilot project city and the economic development
authority shall not enter into a withholding agreement after
June 30, 2024 2027 .
Sec. 19. Section 403.19A, subsection 3, paragraph f, Code
2024, is amended to read as follows:
f. Pursuant to rules adopted by the economic development
authority, the pilot project city employer shall provide on an
annual basis to the economic development authority information
documenting the employer’s compliance of each employer with
each requirement of the withholding agreement, including but
not limited to the number of jobs created or retained and
the amount of investment made by the employer. The economic
development authority shall, in response to receiving such
information from the pilot project city employer , assess the
level of compliance by each employer and provide to the pilot
project city recommendations for either maintaining employer
compliance with the withholding agreement or terminating the
agreement for noncompliance under paragraph “g” . The economic
development authority shall also provide each such assessment
and recommendation report to the department of revenue.
DIVISION III
FRANCHISE TAX —— INVESTMENT SUBSIDIARIES
Sec. 20. Section 422.34, subsection 1, Code 2024, is amended
to read as follows:
1. All state, national, private, cooperative, and savings
banks, credit unions, title insurance and trust companies,
federally chartered savings and loan associations, production
credit associations, insurance companies or insurance
associations, reciprocal or inter-insurance exchanges, and
fraternal beneficiary associations , and investment subsidiaries
included on a return due to an election under section 422.60,
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subsection 1, paragraph “b” .
Sec. 21. Section 422.60, subsection 1, Code 2024, is amended
to read as follows:
1. a. A franchise tax according to and measured by net
income is imposed on financial institutions for the privilege
of doing business in this state as financial institutions.
b. (1) A financial institution with an investment
subsidiary may elect under the regulations of the director to
include the income and expenses of an investment subsidiary
on the franchise tax return for the purpose of imposing the
franchise tax in paragraph “a” .
(2) An election made under this paragraph shall require
the inclusion of the income and expenses of the investment
subsidiary on all subsequent returns of the financial
institution so long as the investment subsidiary remains a
subsidiary of the financial institution unless the director
determines that the filing of separate returns will more
clearly disclose the taxable income of the investment
subsidiary or financial institution. This determination shall
be made after specific request by the taxpayer for the filing
of separate returns.
Sec. 22. Section 422.61, subsection 3, paragraph f, Code
2024, is amended to read as follows:
f. (1) A Except as provided in subparagraph (2), a
deduction shall not be allowed for that portion of the
taxpayer’s expenses computed under this paragraph which is
allocable to an investment in an investment subsidiary. The
portion of the taxpayer’s expenses which is allocable to an
investment in an investment subsidiary is an amount which bears
the same ratio to the taxpayer’s expenses as the taxpayer’s
average adjusted basis, as computed pursuant to section 1016
of the Internal Revenue Code, of investment in that investment
subsidiary bears to the average adjusted basis for all assets
of the taxpayer. The portion of the taxpayer’s expenses that
is computed and disallowed under this paragraph shall be added.
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(2) A deduction shall not be disallowed and may be
subtracted for that portion of the taxpayer’s expenses computed
under this paragraph which is allocable to an investment in
an investment subsidiary if the taxpayer makes an election to
include the investment subsidiary on the same return required
of the taxpayer pursuant to section 422.62.
Sec. 23. Section 422.63, subsection 1, Code 2024, is amended
to read as follows:
1. a. The franchise tax is imposed annually in an amount
equal to the percent specified in subsection 2 of the net
income received or accrued during the taxable year. If the
net income of the financial institution is derived from its
business carried on entirely within the state, the tax shall
be imposed on the entire net income, but if the business is
carried on partly within and partly without the state, the
portion of net income reasonably attributable to the business
within the state shall be specifically allocated or equitably
apportioned within and without the state under rules of the
director.
b. For purposes of apportioning income within and without
the state, if an election is made pursuant to section 422.60,
subsection 1, paragraph “b” , the commercial domicile of an
investment subsidiary included on the return of the financial
institution pursuant to the election shall be that of the
financial institution rather than the investment subsidiary.
Sec. 24. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2025.
Sec. 25. APPLICABILITY. This division of this Act applies
to tax years beginning on or after January 1, 2025.
DIVISION IV
PROPERTY TAX PROCEDURES
Sec. 26. Section 24.2A, subsection 2, paragraph a, Code
2024, is amended to read as follows:
a. On or before 4:00 p.m. on March 15 5 of each year,
each political subdivision shall file with the department
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of management a report containing all necessary information
for the department of management to compile and calculate
amounts required to be included in the statements mailed under
paragraph “b” . If a county or city fails to file all necessary
information with the department of management by 4:00 p.m. on
March 5, taxes levied by the county or city shall be limited to
the prior year’s budget amount.
Sec. 27. Section 24.2A, subsection 2, paragraph b,
unnumbered paragraph 1, Code 2024, is amended to read as
follows:
Not later than March 20 15 , the county auditor, using
information compiled and calculated by the department of
management under paragraph “a” , shall send to each property
owner or taxpayer within the county by regular mail an
individual statement containing all of the following for
each of the political subdivisions comprising the owner’s or
taxpayer’s taxing district:
Sec. 28. Section 24.2A, subsection 2, paragraph b,
subparagraphs (5) and (6), Code 2024, are amended to read as
follows:
(5) An For the budget for the fiscal year beginning July
1, 2024, an example comparing the amount of property taxes on
a residential property with an actual value of one hundred
thousand dollars in the current fiscal year and such amount
on the residential property using the proposed property
tax dollars for the budget year, including the percentage
difference percent change in such amounts. For the budget for
fiscal years beginning on or after July 1, 2025, an example
comparing the amount of property taxes on a residential
property with an actual value of one hundred thousand dollars
in the current fiscal year and one hundred ten percent of such
amount on the residential property using the proposed property
tax dollars for the budget year, including the percent change
in such amounts.
(6) An For the budget for the fiscal year beginning July
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1, 2024, an example comparing the amount of property taxes
on a commercial property with an actual value of one hundred
thousand dollars in the current fiscal year and such amount on
the commercial property using the proposed property tax dollars
for the budget year, including the percentage difference
percent change in such amounts. For the budget for fiscal
years beginning on or after July 1, 2025, an example comparing
the amount of property taxes on a commercial property with an
actual value of three hundred thousand dollars in the current
fiscal year and one hundred ten percent of such amount on the
commercial property using the proposed property tax dollars for
the budget year, including the percent change in such amounts.
Sec. 29. Section 24.2A, subsection 2, paragraph b, Code
2024, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (10) A link to the department of
management’s internet site where the property owner or taxpayer
may view an example of the statement and a brief explanation of
the information included on the statement.
Sec. 30. Section 24.2A, subsection 4, paragraph a, Code
2024, is amended to read as follows:
a. Each political subdivision shall set a time and place
for a public hearing on the political subdivision’s proposed
property tax amount for the budget year and the political
subdivision’s information included in the statements under
subsection 2 . The proposed property tax hearing shall be set
on a date on or after March 20 of the budget year immediately
preceding the budget year for which the tax is being proposed.
At the hearing, the governing body of the political subdivision
shall receive oral or written testimony from any resident or
property owner of the political subdivision. This public
hearing shall be separate from any other meeting of the
governing body of the political subdivision, including any
other meeting or public hearing relating to the political
subdivision’s budget, and other business of the political
subdivision that is not related to the proposed property tax
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amounts and the information in the statements shall not be
conducted at the public hearing. After all testimony has been
received and considered, the governing body may decrease, but
not increase, the proposed property tax amount to be included
in the political subdivision’s budget.
Sec. 31. Section 24.2A, subsection 4, paragraph b, Code
2024, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (4) Failure of a newspaper to publish a
required notice under this paragraph shall not be considered a
failure of a political subdivision to provide required notice
under this paragraph if all of the following conditions are
met:
(a) Notice of the public hearing was provided to each
property owner and each taxpayer within the political
subdivision in statements required under subsection 2,
paragraph “b” .
(b) The political subdivision can demonstrate to the county
auditor that the political subdivision provided sufficient time
for the newspaper to publish the notice.
Sec. 32. Section 24.2A, subsection 4, paragraph c, Code
2024, is amended to read as follows:
c. Notice of the hearing shall also be posted and clearly
identified on the political subdivision’s internet site
for public viewing beginning on the date of the newspaper
publication and shall be maintained on the political
subdivision’s internet site with all such prior year notices
and copies of the statements mailed under subsection 2 .
Additionally, if the political subdivision maintains a social
media account on one or more social media applications, the
public hearing notice or an electronic link to the public
hearing notice shall be posted on each such account on the same
day as the a date no later than the date of publication of the
notice.
Sec. 33. Section 176A.8, subsection 6, Code 2024, is amended
to read as follows:
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6. To prepare annually before March 15 April 30 a budget for
the fiscal year beginning July 1 and ending the following June
30, in accordance with the provisions of chapter 24 and certify
the budget to the board of supervisors of the county of their
extension district as required by law.
Sec. 34. Section 176A.10, subsection 1, unnumbered
paragraph 1, Code 2024, is amended to read as follows:
The extension council of each extension district shall, at
a meeting held before March 15 April 30 , estimate the amount
of money required to be raised by taxation for financing the
county agricultural extension education program authorized in
this chapter . The annual tax levy and the amount of money to
be raised from the levy for the county agricultural extension
education fund shall not exceed the following:
Sec. 35. Section 257.19, subsection 2, Code 2024, is amended
to read as follows:
2. Certification of a board’s intent to participate for a
budget year, the method of funding, and the amount to be raised
shall be made to the department of management not later than
April 15 30 of the base year. Funding for the instructional
support program shall be obtained from instructional support
state aid and from local funding using either an instructional
support property tax or a combination of an instructional
support property tax and an instructional support income
surtax.
Sec. 36. Section 309.93, unnumbered paragraph 1, Code 2024,
is amended to read as follows:
On or before April 15 30 of each year, the board of
supervisors, with the assistance of the county engineer, shall
adopt and submit to the department for approval the county
secondary road budget for the next fiscal year. The budget
shall include an itemized statement of:
Sec. 37. Section 331.301, Code 2024, is amended by adding
the following new subsection:
NEW SUBSECTION . 9A. Pursuant to the general grant of home
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rule power conferred by the Constitution of the State of Iowa
and if not inconsistent with the laws of the general assembly,
a county that has designated more than one city to be a county
seat may consolidate or reduce the number of county seats by
ordinance.
Sec. 38. Section 331.434, subsection 7, Code 2024, is
amended by striking the subsection and inserting in lieu
thereof the following:
7. a. A county may collect taxes for a fiscal year for
which no budget has been certified, but the county shall not
distribute any funds collected for a fiscal year until the
county certifies its budget and transmits the certified budget
to the county auditor.
b. Taxes levied by a county whose budget is certified after
April 30 shall be limited to the taxes levied for the previous
fiscal year subject to applicable levy rate limits in this
chapter. However, that amount shall not exceed the amount the
county could collect based on property assessments for the
fiscal year for which the county failed to certify property
taxes.
c. The department of management may waive the limitation
in paragraph “b” for a county if the department of management
finds, after a showing of evidence by the county, that failure
to certify the budget by April 30 was caused by one or more of
the following:
(1) A newspaper failed to publish a notice of hearing
as required under section 24.2A after the county gave the
newspaper sufficient time to publish the notice.
(2) A verifiable public emergency or weather-related event
which forced the cancellation of a public hearing as required
under section 24.2A.
(3) An illness or unexpected vacancy of one or more board
members caused a lack of a quorum necessary to hold a hearing
as required under section 24.2A.
(4) A failure of state software or a state process caused
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the board to miss the required date to certify the county’s
budget.
Sec. 39. Section 331.510, subsection 3, Code 2024, is
amended to read as follows:
3. An annual report not later than January 1 to the
department of management of the valuation by class of property
for each taxing district in the county as instructed by and on
forms provided by the department of management. The valuations
reported shall be those valuations used for determining
the levy rates necessary to fund the budgets of the taxing
districts for the following fiscal year. Each annual report
under this subsection for assessment years beginning on
or after January 1, 2024, shall distinguish such values as
revaluation or other type of addition to value, as defined
and submitted in the assessor’s abstract transmitted to the
department of revenue under section 441.45 .
Sec. 40. Section 384.1, subsection 3, paragraph c, Code
2024, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (4) Notwithstanding other provisions of
this paragraph, if a city’s actual levy rate for the current
fiscal year is zero dollars per thousand dollars of assessed
value and the total assessed value used to calculate taxes
under this paragraph for the budget year exceeds one hundred
two and seventy-five hundredths percent, the city’s tax levy
imposed by this paragraph may be levied at a rate not to exceed
eight dollars and ten cents per thousand dollars of assessed
valuation.
Sec. 41. Section 384.16, subsection 6, Code 2024, is amended
by striking the subsection and inserting in lieu thereof the
following:
6. a. Taxes from a city levy may be collected for a fiscal
year for which no budget has been certified, but the county
shall not distribute any funds collected from the levies to
the city until the city certifies its budget and transmits the
certified budget to the county auditor.
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b. Taxes levied by a city whose budget is certified after
April 30 shall be limited to the taxes levied for the previous
fiscal year subject to applicable levy rate limits in this
chapter. However, that amount shall not exceed the amount the
city could collect based on property assessments for the fiscal
year for which the city failed to certify property taxes.
c. The department of management may waive the limitation
in paragraph “b” for a city if the department of management
finds, after a showing of evidence by the city, that failure
to certify the budget by April 30 was caused by one or more of
the following:
(1) A newspaper failed to publish a notice of hearing as
required under section 24.2A after the city gave the newspaper
sufficient time to publish the notice.
(2) A verifiable public emergency or weather-related event
which forced the cancellation of a public hearing as required
under section 24.2A.
(3) An illness or unexpected vacancy of one or more council
members caused a lack of a quorum necessary to hold a hearing
as required under section 24.2A.
(4) A failure of state software or a state process caused
the council to miss the required date to certify the city’s
budget.
Sec. 42. Section 403.22, subsection 5, Code 2024, is amended
to read as follows:
5. a. Except for a municipality with a population under
fifteen thousand, the division of the revenue under section
403.19 for each project under this section shall be limited
to tax collections for ten fiscal years beginning with the
second fiscal year after the year in which the municipality
first certifies to the county auditor the amount of any loans,
advances, indebtedness, or bonds which qualify for payment from
the division of the revenue in connection with the project.
b. A municipality with a population under fifteen thousand
may, with the approval of the governing bodies of all other
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affected taxing districts, extend the division of revenue under
section 403.19 for up to five years if necessary to adequately
fund the project.
c. Notwithstanding other time limitations provided by this
subsection, for urban renewal areas established before January
1, 2018, a municipality may, with the approval of the governing
bodies of all other affected taxing districts, extend the
division of revenue under section 403.19 for up to three years
if necessary to adequately fund the project.
d. The portion of the urban renewal area which is involved
in a project under this section shall not be subject to any
subsequent division of revenue under section 403.19 .
Sec. 43. Section 425.1A, Code 2024, is amended by adding the
following new subsection:
NEW SUBSECTION . 3. The list of the names, addresses,
and dates of birth of individuals allowed an exemption
under this section and maintained by the county recorder,
county treasurer, county assessor, city assessor, or other
governmental body and obtained for purposes of allowing an
exemption under this section is confidential information and
shall not be disseminated to any person unless otherwise
ordered by a court or released by the lawful custodian of
the records pursuant to state or federal law. The county
recorder, county treasurer, county assessor, city assessor,
or other governmental body responsible for maintaining the
names, addresses, and dates of birth of individuals allowed
an exemption under this section may display such exemption on
individual paper records and individual electronic records,
including display on an internet site.
Sec. 44. Section 441.45, Code 2024, is amended by adding the
following new subsection:
NEW SUBSECTION . 3. An assessor shall report valuations
of real property by parcel, including identifying additions
by revaluation or other type of addition to value, and shall
transmit and maintain the data in a manner that is compatible
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with software used by the county auditor and that allows the
county auditor to use the data to file the reports required by
section 331.510, subsections 3 and 4.
Sec. 45. 2023 Iowa Acts, chapter 71, section 137, is amended
to read as follows:
SEC. 137. Section 8.6 , Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 17. County and city bond issuance. To
annually prepare and file with the general assembly by December
January 1 a report specifying the updated population thresholds
as adjusted under section 331.442, subsection 5 , and section
384.26, subsection 5 , and detailing the use of the bond
issuance procedures under section 331.442, subsection 5 , and
section 384.26, subsection 5 , including the usage of such
procedures by counties and cities based on the population-based
limitations and the amount of bonds issued for each such usage.
Sec. 46. REPEAL. 1848 Iowa Acts, First Extraordinary
Session, chapter 52, is repealed.
Sec. 47. EFFECTIVE DATE. The following, being deemed of
immediate importance, take effect upon enactment:
1. The section of this division of this Act enacting section
24.2A, subsection 2, paragraph “b”, subparagraph (10).
2. The section of this division of this Act enacting section
24.2A, subsection 4, paragraph “b”, subparagraph (4).
3. The section of this division of this Act amending section
24.2A, subsection 4, paragraph “c”.
4. The section of this division of this division of this Act
amending section 176A.8, subsection 6.
5. The section of this division of this Act amending section
176A.10, subsection 1, unnumbered paragraph 1.
6. The section of this division of this Act amending section
257.19, subsection 2.
7. The section of this division of this Act amending section
309.93, unnumbered paragraph 1.
8. The section of this division of this Act enacting section
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331.301, subsection 9A.
9. The section of this division of this Act amending section
331.434, subsection 7.
10. The section of this division of this Act amending
section 331.510, subsection 3.
11. The section of this division of this Act enacting
section 384.1, subsection 3, paragraph “c”, subparagraph (4).
12. The section of this division of this Act amending
section 384.16, subsection 6.
13. The section of this division of this Act amending
section 403.22, subsection 5.
14. The section of this division of this Act enacting
section 441.45, subsection 3.
15. The section of this division of this Act repealing 1848
Iowa Acts, First Extraordinary Session, chapter 52.
Sec. 48. RETROACTIVE APPLICABILITY. The following apply
retroactively to January 1, 2024:
1. The sections of this division of this Act enacting the
following:
a. Section 24.2A, subsection 2, paragraph “b”, subparagraph
(10).
b. Section 24.2A, subsection 4, paragraph “b”, subparagraph
(4).
2. The sections of this division of this Act amending the
following:
a. Section 24.2A, subsection 4, paragraph “c”.
b. Section 176A.8, subsection 6.
c. Section 176A.10, subsection 1, unnumbered paragraph 1.
d. Section 257.19, subsection 2.
e. Section 309.93, unnumbered paragraph 1.
DIVISION V
COMPENSATION OF ELECTED COUNTY OFFICIALS
Sec. 49. Section 331.212, subsection 2, Code 2024, is
amended by adding the following new paragraphs:
NEW PARAGRAPH . i. Setting the compensation schedule of
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elected county officers, if the board has not established or
has dissolved a county compensation board pursuant to section
331.905.
NEW PARAGRAPH . j. Dissolving a county compensation board.
Sec. 50. Section 331.321, subsection 1, paragraph l, Code
2024, is amended to read as follows:
l. Two members of the county compensation board in
accordance with section 331.905 , if the board of supervisors
has established a county compensation board .
Sec. 51. Section 331.322, subsections 6 and 7, Code 2024,
are amended to read as follows:
6. Review Annually prepare and review the compensation
schedule, or review the final compensation schedule of the
county compensation board if the board of supervisors has
established a county compensation board, and determine the
final compensation schedule in accordance with section 331.907 .
7. Provide necessary office facilities and the technical
and clerical assistance requested by the county compensation
board to accomplish the purposes of sections 331.905 and
331.907 , if the board of supervisors has established a county
compensation board .
Sec. 52. Section 331.905, subsection 1, unnumbered
paragraph 1, Code 2024, is amended to read as follows:
There is created in each county A board of supervisors may
vote to establish a county compensation board which subject to
the provisions of this section. The county compensation board
shall be composed of seven members who are residents of the
county. The members of the county compensation board shall be
selected as follows:
Sec. 53. Section 331.905, Code 2024, is amended by adding
the following new subsection:
NEW SUBSECTION . 7. A board of supervisors may dissolve a
county compensation board upon a majority vote of the members
of the board of supervisors. If the board of supervisors
has not established or has dissolved the county compensation
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board, the board of supervisors shall carry out the duties
as the county compensation board, including as provided in
section 331.907. Pursuant to section 331.907, in setting
the salary of the county sheriff, the board of supervisors
shall set the sheriff’s salary so that it is comparable to
salaries paid to professional law enforcement administrators
and command officers of the state patrol, the division of
criminal investigation of the department of public safety, and
city police chiefs employed by cities of similar population to
the population of the county.
Sec. 54. Section 331.907, subsections 1 and 2, Code 2024,
are amended to read as follows:
1. The annual compensation of the auditor, treasurer,
recorder, sheriff, county attorney, and supervisors shall
be determined as provided in this section . The county
compensation board annually shall review the compensation
paid to comparable officers in other counties of this state,
other states, private enterprise, and the federal government.
In setting the salary of the county sheriff, the county
compensation board shall set the sheriff’s salary so that it
is comparable to salaries paid to professional law enforcement
administrators and command officers of the state patrol,
the division of criminal investigation of the department of
public safety, and city police chiefs employed by cities of
similar population to the population of the county. The county
compensation board shall prepare a compensation schedule
for the elective elected county officers for the succeeding
fiscal year. The county compensation board shall provide
documentation to the board of supervisors that demonstrates
how the county compensation board determined the recommended
compensation schedule, including by providing the applicable
compensation information for comparable officers in other
counties of this state, other states, private enterprise, and
the federal government. A recommended compensation schedule
requires a majority vote of the membership of the county
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compensation board.
2. At the public hearing held on the county budget as
provided in section 331.434 , the county compensation board
shall submit its recommended compensation schedule for the
next fiscal year to the board of supervisors for inclusion
in the county budget. The board of supervisors shall review
the recommended compensation schedule for the elected county
officers and determine the final compensation schedule which
shall not exceed the compensation schedule recommended by
the county compensation board . In determining the final
compensation schedule if the board of supervisors wishes to
reduce the amount of the recommended compensation schedule,
the amount of salary increase proposed for each elected county
officer, except as provided in subsection 3 , shall be reduced
an equal percentage. In determining the final compensation
schedule for the elected county officers, the board of
supervisors may set compensation at less than the compensation
provided in the current compensation schedule if the position
is reduced to part-time under the recommended compensation
schedule. A copy of the final compensation schedule shall be
filed with the county budget at the office of the director of
the department of management. The final compensation schedule
takes effect on July 1 following its adoption by the board
of supervisors. For purposes of this subsection, “current
compensation schedule” means the compensation schedule in
effect when the board of supervisors considers the recommended
compensation schedule.
DIVISION VI
COUNTY AND CITY PROPERTY TAXES
Sec. 55. Section 331.423, subsection 1, paragraph b,
subparagraphs (2) and (3), Code 2024, are amended to read as
follows:
(2) (a) If the total assessed value used to calculate
taxes for general county services under this paragraph for the
budget year exceeds one hundred three two and seventy-five
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hundredths percent, but is less than one hundred six four
percent, of the total assessed value used to calculate taxes
for general county services for the current fiscal year, the
adjusted general county basic levy rate, as previously adjusted
under this subparagraph, if applicable, shall be reduced to
a rate per thousand dollars of assessed value that is equal
to one thousand multiplied by the quotient of the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 1 divided by one hundred two one percent
of the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 1 shall also
include property tax dollar amounts levied for general county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023.
(b) If the total assessed value used to calculate taxes for
general county services under this paragraph for the budget
year is equal to or exceeds one hundred four percent, but
is less than one hundred six percent, of the total assessed
value used to calculate taxes for general county services for
the current fiscal year, the adjusted general county basic
levy rate, as previously adjusted under this subparagraph, if
applicable, shall be reduced to a rate per thousand dollars
of assessed value that is equal to one thousand multiplied
by the quotient of the current fiscal year’s actual property
tax dollars certified for levy under this subsection 1 divided
by one hundred two percent of the total assessed value used
to calculate such taxes for the current fiscal year. For
the budget year beginning July 1, 2024, only, the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 1 shall also include property tax dollar
amounts levied for general county services by the county under
section 331.426, Code 2023, for the fiscal year beginning July
1, 2023.
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(c) If the total assessed value used to calculate taxes
for general county services under this paragraph for the
budget year is equal to or exceeds one hundred six percent of
the total assessed value used to calculate taxes for general
county services for the current fiscal year, the adjusted
general county basic levy rate, as previously adjusted under
this subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 divided by one hundred three percent of
the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 1 shall also
include property tax dollar amounts levied for general county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023.
(3) (a) (i) In addition to the limitation under
subparagraph (2), if the county’s actual levy rate imposed
under this subsection 1 for the current fiscal year is three
dollars and fifty cents or less per thousand dollars of
assessed value and the total assessed value used to calculate
taxes for general county services under this paragraph for the
budget year exceeds one hundred three two and seventy-five
hundredths percent, but is less than one hundred six four
percent, of the total assessed value used to calculate taxes
for general county services for the current fiscal year, the
levy rate imposed under this subsection 1 for the budget year
shall not exceed a rate per thousand dollars of assessed value
that is equal to one thousand multiplied by the quotient of the
current fiscal year’s actual property tax dollars certified for
levy under this subsection 1 divided by one hundred two one
percent of the total assessed value used to calculate taxes for
general county services for the current fiscal year.
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(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection 1
for the current fiscal year shall also include the amount per
thousand dollars of assessed value levied for general county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 shall also include amounts levied for general
county services by the county under section 331.426, Code 2023 ,
for the fiscal year beginning July 1, 2023.
(b) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
subsection 1 for the current fiscal year is three dollars and
fifty cents or less per thousand dollars of assessed value and
the total assessed value used to calculate taxes for general
county services under this paragraph for the budget year is
equal to or exceeds one hundred four percent, but is less than
one hundred six percent, of the total assessed value used to
calculate taxes for general county services for the current
fiscal year, the levy rate imposed under this subsection 1 for
the budget year shall not exceed a rate per thousand dollars
of assessed value that is equal to one thousand multiplied by
the quotient of the current fiscal year’s actual property tax
dollars certified for levy under this subsection 1 divided by
one hundred two percent of the total assessed value used to
calculate taxes for general county services for the current
fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection 1
for the current fiscal year shall also include the amount per
thousand dollars of assessed value levied for general county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 shall also include amounts levied for general
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county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(c) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
subsection 1 for the current fiscal year is three dollars and
fifty cents or less per thousand dollars of assessed value and
the total assessed value used to calculate taxes for general
county services under this paragraph for the budget year is
equal to or exceeds one hundred six percent of the total
assessed value used to calculate taxes for general county
services for the current fiscal year, the levy rate imposed
under this subsection 1 for the budget year shall not exceed a
rate per thousand dollars of assessed value that is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 divided by one hundred three percent of the
total assessed value used to calculate taxes for general county
services for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection 1
for the current fiscal year shall also include the amount per
thousand dollars of assessed value levied for general county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 shall also include amounts levied for general
county services by the county under section 331.426, Code 2023 ,
for the fiscal year beginning July 1, 2023.
Sec. 56. Section 331.423, subsection 2, paragraph b,
subparagraphs (2) and (3), Code 2024, are amended to read as
follows:
(2) (a) If the total assessed value used to calculate
taxes for rural county services under this paragraph for the
budget year exceeds one hundred three two and seventy-five
hundredths percent, but is less than one hundred six four
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percent, of the total assessed value used to calculate taxes
for rural county services for the current fiscal year, the
adjusted rural county basic levy rate, as previously adjusted
under this subparagraph, if applicable, shall be reduced to
a rate per thousand dollars of assessed value that is equal
to one thousand multiplied by the quotient of the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 2 divided by one hundred two one percent
of the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 2 shall also
include property tax dollar amounts levied for rural county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023.
(b) If the total assessed value used to calculate taxes
for rural county services under this paragraph for the budget
year is equal to or exceeds one hundred four percent, but
is less than one hundred six percent, of the total assessed
value used to calculate taxes for rural county services for
the current fiscal year, the adjusted rural county basic levy
rate, as previously adjusted under this subparagraph, if
applicable, shall be reduced to a rate per thousand dollars
of assessed value that is equal to one thousand multiplied
by the quotient of the current fiscal year’s actual property
tax dollars certified for levy under this subsection 2 divided
by one hundred two percent of the total assessed value used
to calculate such taxes for the current fiscal year. For
the budget year beginning July 1, 2024, only, the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 2 shall also include property tax dollar
amounts levied for rural county services by the county under
section 331.426, Code 2023, for the fiscal year beginning July
1, 2023.
(c) If the total assessed value used to calculate taxes
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for rural county services under this paragraph for the budget
year is equal to or exceeds one hundred six percent of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year, the adjusted rural
county basic levy rate, as previously adjusted under this
subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 divided by one hundred three percent of
the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 2 shall also
include property tax dollar amounts levied for rural county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023.
(3) (a) (i) In addition to the limitation under
subparagraph (2), if the county’s actual levy rate imposed
under this paragraph for the current fiscal year is three
dollars and ninety-five cents or less per thousand dollars of
assessed value and the total assessed value used to calculate
taxes for rural county services under this paragraph for the
budget year exceeds one hundred three two and seventy-five
hundredths percent, but is less than one hundred six four
percent, of the total assessed value used to calculate taxes
for rural county services for the current fiscal year, the levy
rate imposed under this subsection 2 for the budget year shall
not exceed a rate per thousand dollars of assessed value that
is equal to one thousand multiplied by the quotient of the
current fiscal year’s actual property tax dollars certified for
levy under this subsection 2 divided by one hundred two one
percent of the total assessed value used to calculate taxes for
rural county services for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
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the county’s actual levy rate imposed under this subsection
2 for the current fiscal year shall also include the amount
per thousand dollars of assessed value levied for rural county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 shall also include amounts levied for rural
county services by the county under section 331.426, Code 2023 ,
for the fiscal year beginning July 1, 2023.
(b) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
paragraph for the current fiscal year is three dollars and
ninety-five cents or less per thousand dollars of assessed
value and the total assessed value used to calculate taxes
for rural county services under this paragraph for the budget
year exceeds one hundred four percent, but is less than one
hundred six percent, of the total assessed value used to
calculate taxes for rural county services for the current
fiscal year, the levy rate imposed under this subsection 2 for
the budget year shall not exceed a rate per thousand dollars
of assessed value that is equal to one thousand multiplied
by the quotient of the current fiscal year’s actual property
tax dollars certified for levy under this subsection 2 divided
by one hundred two percent of the total assessed value used
to calculate taxes for rural county services for the current
fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection
2 for the current fiscal year shall also include the amount
per thousand dollars of assessed value levied for rural county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 shall also include amounts levied for rural
county services by the county under section 331.426, Code 2023,
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for the fiscal year beginning July 1, 2023.
(c) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
subsection 2 for the current fiscal year is three dollars and
ninety-five cents or less per thousand dollars of assessed
value and the total assessed value used to calculate taxes
for rural county services under this paragraph for the budget
year is equal to or exceeds one hundred six percent of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year, the levy rate imposed
under this subsection 2 for the budget year shall not exceed a
rate per thousand dollars of assessed value that is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 divided by one hundred three percent of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection
2 for the current fiscal year shall also include the amount
per thousand dollars of assessed value levied for rural county
services by the county under section 331.426, Code 2023 , for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 shall also include amounts levied for rural
county services by the county under section 331.426, Code 2023 ,
for the fiscal year beginning July 1, 2023.
Sec. 57. Section 384.1, subsection 3, paragraph c,
subparagraphs (2) and (3), Code 2024, are amended to read as
follows:
(2) (a) If the total assessed value used to calculate
taxes under this paragraph for the budget year exceeds one
hundred three two and seventy-five hundredths percent, but is
less than one hundred six four percent, of the total assessed
value used to calculate taxes under this subsection for the
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current fiscal year, the adjusted city general fund levy rate,
as previously adjusted under this subparagraph, if applicable,
shall be reduced to a rate per thousand dollars of assessed
value that is equal to one thousand multiplied by the quotient
of the current fiscal year’s actual property tax dollars
certified for levy under this subsection divided by one hundred
two one percent of the total assessed value used to calculate
such taxes for the current fiscal year. For the budget year
beginning July 1, 2024, only, the current fiscal year’s actual
property tax dollars certified for levy under this subsection
shall also include property tax dollar amounts levied under the
provisions specified in paragraph “b” , subparagraphs (1), (2),
and (3).
(b) If the total assessed value used to calculate taxes
under this paragraph for the budget year exceeds one hundred
four percent, but is less than one hundred six percent, of
the total assessed value used to calculate taxes under this
subsection for the current fiscal year, the adjusted city
general fund levy rate, as previously adjusted under this
subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection divided by one hundred two percent of the total
assessed value used to calculate such taxes for the current
fiscal year. For the budget year beginning July 1, 2024, only,
the current fiscal year’s actual property tax dollars certified
for levy under this subsection shall also include property
tax dollar amounts levied under the provisions specified in
paragraph “b” , subparagraphs (1), (2), and (3).
(c) If the total assessed value used to calculate taxes
under this paragraph for the budget year is equal to or exceeds
one hundred six percent of the total assessed value used to
calculate taxes under this subsection for the current fiscal
year, the adjusted city general fund levy rate, as previously
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adjusted under this subparagraph, if applicable, shall be
reduced to a rate per thousand dollars of assessed value that
is equal to one thousand multiplied by the quotient of the
current fiscal year’s actual property tax dollars certified for
levy under this subsection divided by one hundred three percent
of the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection shall also
include property tax dollar amounts levied under the provisions
specified in paragraph “b” , subparagraphs (1), (2), and (3).
(3) (a) (i) In addition to the limitation under
subparagraph (2), if the city’s actual levy rate imposed under
this subsection for the current fiscal year is eight dollars
and ten cents or less per thousand dollars of assessed value
and the total assessed value used to calculate taxes under this
paragraph for the budget year exceeds one hundred three two and
seventy-five hundredths percent, but is less than one hundred
six four percent, of the total assessed value used to calculate
taxes under this subsection for the current fiscal year, the
levy rate imposed under this paragraph for the budget year
shall not exceed a rate per thousand dollars of assessed value
that is equal to one thousand multiplied by the quotient of the
current fiscal year’s actual property tax dollars certified for
levy under this subsection divided by one hundred two percent
of the total assessed value used to calculate taxes under this
subsection for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only, the
city’s actual levy rate imposed under this subsection for the
current fiscal year shall also include the sum of the amounts
per thousand dollars of assessed value specified in paragraph
“b” , subparagraphs (1), (2), and (3), and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection shall also include property tax dollar amounts
levied by the city under the provisions specified in paragraph
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“b” , subparagraphs (1), (2), and (3).
(b) (i) In addition to the limitation under subparagraph
(2), if the city’s actual levy rate imposed under this
subsection for the current fiscal year is eight dollars and
ten cents or less per thousand dollars of assessed value and
the total assessed value used to calculate taxes under this
paragraph for the budget year exceeds one hundred four percent,
but is less than one hundred six percent, of the total assessed
value used to calculate taxes under this subsection for the
current fiscal year, the levy rate imposed under this paragraph
for the budget year shall not exceed a rate per thousand
dollars of assessed value that is equal to one thousand
multiplied by the quotient of the current fiscal year’s actual
property tax dollars certified for levy under this subsection
divided by one hundred two percent of the total assessed value
used to calculate taxes under this subsection for the current
fiscal year.
(ii) For the budget year beginning July 1, 2024, only, the
city’s actual levy rate imposed under this subsection for the
current fiscal year shall also include the sum of the amounts
per thousand dollars of assessed value specified in paragraph
“b” , subparagraphs (1), (2), and (3), and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection shall also include property tax dollar amounts
levied by the city under the provisions specified in paragraph
“b” , subparagraphs (1), (2), and (3).
(c) (i) In addition to the limitation under subparagraph
(2), if the city’s actual levy rate imposed under this
subsection for the current fiscal year is eight dollars and
ten cents or less per thousand dollars of assessed value
and the total assessed value used to calculate taxes under
this paragraph for the budget year is equal to or exceeds
one hundred six percent of the total assessed value used to
calculate taxes under this subsection for the current fiscal
year, the levy rate imposed under this paragraph for the budget
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year shall not exceed a rate per thousand dollars of assessed
value that is equal to one thousand multiplied by the quotient
of the current fiscal year’s actual property tax dollars
certified for levy under this subsection divided by one hundred
three percent of the total assessed value used to calculate
taxes under this subsection for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only, the
city’s actual levy rate imposed under this subsection for the
current fiscal year shall also include the sum of the amounts
per thousand dollars of assessed value specified in paragraph
“b” , subparagraphs (1), (2), and (3), and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection shall also include property tax dollar amounts
levied by the city under the provisions specified in paragraph
“b” , subparagraphs (1), (2), and (3).
Sec. 58. APPLICABILITY. This division of this Act applies
to taxes and budgets for fiscal years beginning on or after
July 1, 2025.
DIVISION VII
PROPERTY TAX ASSESSMENT LIMITATIONS
Sec. 59. Section 441.21, subsection 5, paragraph a, Code
2024, is amended to read as follows:
a. (1) For valuations established as of January 1, 1979,
property valued by the department of revenue pursuant to
chapters 428, 433 , and 437 , and 438 shall be considered as
one class of property and shall be assessed as a percentage
of its actual value. The percentage shall be determined by
the director of revenue in accordance with the provisions of
this section . For valuations established as of January 1,
1979, the percentage shall be the quotient of the dividend and
divisor as defined in this section . The dividend shall be the
total actual valuation established for 1978 by the department
of revenue, plus ten percent of the amount so determined.
The divisor for property valued by the department of revenue
pursuant to chapters 428, 433 , and 437 , and 438 shall be the
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valuation established for 1978, plus the amount of value added
to the total actual value by the revaluation of the property
by the department of revenue as of January 1, 1979. For
valuations established as of January 1, 1980, property valued
by the department of revenue pursuant to chapters 428, 433 , and
437 , and 438 shall be assessed at a percentage of its actual
value. The percentage shall be determined by the director of
revenue in accordance with the provisions of this section . For
valuations established as of January 1, 1980, the percentage
shall be the quotient of the dividend and divisor as defined in
this section . The dividend shall be the total actual valuation
established for 1979 by the department of revenue, plus eight
percent of the amount so determined. The divisor for property
valued by the department of revenue pursuant to chapters 428,
433 , and 437 , and 438 shall be the valuation established for
1979, plus the amount of value added to the total actual
value by the revaluation of the property by the department of
revenue as of January 1, 1980. For valuations established as
of January 1, 1981, and each year thereafter, the percentage
of actual value at which property valued by the department of
revenue pursuant to chapters 428, 433 , and 437 , and 438 shall
be assessed shall be calculated in accordance with the methods
provided herein, except that any references to ten percent in
this subsection shall be eight percent.
(2) For valuations established on or after January 1,
2013, property valued by the department of revenue pursuant to
chapter 434 shall be assessed at a portion of its actual value
determined in the same manner at which property assessed as
commercial property is assessed under paragraph “b” for the same
assessment year.
(3) For valuations established for the assessment year
beginning January 1, 2025, the percentage of actual value at
which property valued by the department of revenue pursuant to
chapters 428 and 438 shall be assessed shall be ninety-eight
percent.
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(4) For valuations established for the assessment year
beginning January 1, 2026, the percentage of actual value at
which property valued by the department of revenue pursuant
to chapters 428 and 438 shall be assessed shall be ninety-six
percent.
(5) For valuations established for the assessment year
beginning January 1, 2027, the percentage of actual value at
which property valued by the department of revenue pursuant to
chapters 428 and 438 shall be assessed shall be ninety-four
percent.
(6) For valuations established for the assessment year
beginning January 1, 2028, the percentage of actual value at
which property valued by the department of revenue pursuant
to chapters 428 and 438 shall be assessed shall be ninety-two
percent.
(7) For valuations established on or after January 1, 2029,
the percentage of actual value at which property valued by the
department of revenue pursuant to chapters 428 and 438 shall be
assessed shall be ninety percent.
Sec. 60. Section 441.21, subsections 9 and 10, Code 2024,
are amended to read as follows:
9. Not later than November 1, 1979, and November 1 of
each subsequent year, the director shall certify to the
county auditor of each county the percentages of actual
value at which residential property, agricultural property,
commercial property, industrial property, property valued
by the department of revenue pursuant to chapters 428 and
438, property valued by the department of revenue pursuant
to chapter 434 , and property valued by the department of
revenue pursuant to chapters 428, 433 , and 437 , and 438 in
each assessing jurisdiction in the county shall be assessed
for taxation, including for assessment years beginning on
or after January 1, 2022, the percentages used to apply the
assessment limitations under subsection 5 , paragraphs “b”
and “c” . The county auditor shall proceed to determine the
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assessed values of agricultural property, residential property,
commercial property, industrial property, property valued by
the department of revenue pursuant to chapters 428 and 438,
property valued by the department of revenue pursuant to
chapter 434 , and property valued by the department of revenue
pursuant to chapters 428, 433 , and 437 , and 438 by applying
such percentages to the current actual value of such property,
as reported to the county auditor by the assessor, and the
assessed values so determined shall be the taxable values of
such properties upon which the levy shall be made.
10. The percentages of actual value computed by the
department of revenue for agricultural property, residential
property, commercial property, industrial property, property
valued by the department of revenue pursuant to chapters
428 and 438, property valued by the department of revenue
pursuant to chapter 434 , and property valued by the department
of revenue pursuant to chapters 428, 433 , and 437 , and 438 ,
including for assessment years beginning on or after January 1,
2022, the percentages used to apply the assessment limitations
under subsection 5 , paragraphs “b” and “c” , and used to
determine assessed values of those classes of property do not
constitute a rule as defined in section 17A.2, subsection 11 .
Sec. 61. APPLICABILITY. This division of this Act applies
to assessment years beginning on or after January 1, 2025.
DIVISION VIII
TAXPAYER RELIEF FUND
Sec. 62. Section 8.54, subsection 5, paragraph b, Code 2024,
is amended to read as follows:
b. For fiscal years in which it is anticipated that moneys
will be transferred from the taxpayer relief fund to the
general fund of the state in accordance with section 8.57E,
subsection 2 , paragraph “b” , the original state general fund
expenditure limitation amount provided for in subsection
3 shall not be readjusted to include the amount of moneys
anticipated to be so transferred. This paragraph is repealed
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on the date that section 8.57E, subsection 2 , paragraph “b” , is
repealed July 1, 2029 .
Sec. 63. Section 8.57E, subsection 2, paragraph b, Code
2024, is amended by striking the paragraph and inserting in
lieu thereof the following:
b. (1) For the fiscal year beginning July 1, 2024, and for
each fiscal year thereafter, if the actual net revenue for the
general fund of the state for the fiscal year is less than the
net general fund appropriation for the fiscal year, there is
transferred from the taxpayer relief fund to the general fund
of the state an amount equal to fifty percent of the difference
or the remaining balance of the taxpayer relief fund, whichever
is lower.
(2) For purposes of this paragraph, “net general fund
appropriation” means the total appropriations from the general
fund of the state enacted by the general assembly and approved
by the governor or otherwise provided by law for the fiscal
year, minus reversions to the general fund of the state.
(3) This paragraph is repealed July 1, 2029.
DIVISION IX
CORRECTIVE PROVISION
Sec. 64. Section 15.491, subsection 1A, if enacted by 2024
Iowa Acts, Senate File 574, section 3, is amended to read as
follows:
1A. “Agricultural land” means the same as defined in section
91.1 9I.1 .
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill modifies the individual and alternate income
tax rates, withholding credits, franchise tax deductions,
adjustments to city and county tax levy rates, and property
tax assessment limitations and procedures, changes methods of
determining compensation of county officials, makes contingent
transfers from the taxpayer relief fund, and makes corrections.
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DIVISION I —— INDIVIDUAL AND ALTERNATE INCOME TAX RATES
BEGINNING IN TAX YEAR 2025. The bill moves up the future
individual single rate from tax years beginning on or after
January 1, 2026, to tax years beginning on or after January 1,
2025, and decreases the future rate from 3.90 percent to 3.80
percent.
The bill likewise moves up the corresponding alternate
individual income tax rate from tax years beginning on or after
January 1, 2026, to tax years beginning on or after January 1,
2025, and decreases the future alternate rate from 4.40 percent
to 4.30 percent. The alternate income tax rate is available
for a taxpayer whose income marginally exceeds the individual
income tax filing thresholds in Code sections 422.5(2) and (3),
and is used to calculate income tax owed.
The bill strikes references to calculating the latest
cumulative inflation factor in Code section 422.5(6) and Code
section 422.21(5) due to removing income tax brackets. The
bill also makes conforming changes due to having a single
individual income tax rate.
The bill specifies any rate of withholding shall not be
higher than the rate in Code section 422.5, as amended by the
bill.
The division takes effect January 1, 2025, and applies to tax
years beginning on or after that date.
DIVISION II —— TARGETED JOBS WITHHOLDING CREDIT. The bill
makes changes to the targeted jobs withholding credit. The
targeted jobs withholding credit is between a pilot project
city located in a county bordering another state, the economic
development authority, and an employer, where the employer
receives a credit based upon a percentage of gross wages paid
after retaining or creating jobs, or making an investment in
the pilot project city. Under current law, a targeted jobs
withholding credit agreement must create or retain 10 jobs or
an employer entering such an agreement must make a qualifying
investment of $500,000 within the pilot project city. The
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bill changes the employer’s qualifying investment amount in
the pilot project city from $500,000 to $1 million. The bill
extends the ability of the economic development authority to
enter into a targeted jobs withholding agreement from June 30,
2024, to June 30, 2027. The bill changes the annual compliance
reporting to the economic development authority about the
targeted jobs withholding agreement from the pilot project city
to the employer.
DIVISION III —— FRANCHISE TAX —— INVESTMENT SUBSIDIARIES.
Under current law, for purposes of the franchise tax, a
deduction is not allowed for investments in investment
subsidiaries of financial institutions. However, the bill
allows the portion of the financial institution’s expenses
which are allocable to an investment in an investment
subsidiary as a deduction if the financial institution elects
to include the income and expenses of the investment subsidiary
on the franchise tax return of the financial institution.
For purposes of apportioning income under the bill, if an
election is made to include the investment subsidiary on the
financial institution’s franchise tax return, the commercial
domicile of an investment subsidiary included on the return of
the financial institution pursuant to the election shall be
that of the financial institution rather than the investment
subsidiary. The bill requires the inclusion of the income
and expenses of the investment subsidiary on all subsequent
returns of the financial institution so long as the investment
subsidiary remains a subsidiary of the financial institution.
If the financial institution requests the filing of separate
returns and the director determines the filing of separate
returns will more clearly disclose the taxable income of the
investment subsidiary or financial institution, the financial
institution may file a separate return from the investment
subsidiary.
The division takes effect on January 1, 2025, and applies to
tax years beginning on or after that date.
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DIVISION IV —— PROPERTY TAX PROCEDURES. The bill changes
from March 15 to 4:00 p.m. on March 5 the deadline for
political subdivisions to file reports with the department
of management (DOM) containing all necessary information for
DOM to compile and calculate amounts required to be included
in the statements mailed to property owners and taxpayers in
the political subdivision. The bill limits the taxes levied by
counties and cities that fail to file all necessary information
with DOM by 4:00 p.m. on March 5 to the previous year’s budget
amount.
The bill requires county auditors to send to each property
owner or taxpayer within the county by regular mail an
individual statement containing information relating to
property taxes no later than March 15. Under current law, this
statement must be sent no later than March 20.
Under current law, property tax statements sent by a county
auditor to property owners and taxpayers must include an
example comparing the amount of property taxes on a residential
property and a commercial property with actual values of
$100,000 for the current fiscal year and the amount of proposed
property taxes on a residential property and a commercial
property with an actual value of $100,000 for the budget
year. For budgets for fiscal years beginning on or after July
1, 2025, the bill changes the amount used as an example for
commercial property for the current fiscal year from $100,000
to $300,000. The bill also changes the amount used as an
example for residential and commercial property in the budget
year to 110 percent of the value of the property used as the
current fiscal year example.
Under current law, when a statement makes a comparison
between the change in the amount of taxes from the current
fiscal year example to the budget year example, the statement
must state the percent difference between the two years. The
percent difference is always stated as an absolute value
regardless of whether the change is positive or negative.
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For statements created on or after January 1, 2024, the bill
instead requires statements to include the percent change
between the example amounts for the current fiscal year and the
budget year.
Retroactive to January 1, 2024, the bill requires the
property tax statements sent by a county auditor to property
owners and taxpayers to include a link to DOM’s internet site
where the property owner or taxpayer may view an example of the
statement and a brief explanation of the information included
on the statement.
Under current law, each political subdivision must set
a time and place for a public hearing on the political
subdivision’s proposed property tax amount for the budget year
and the political subdivision’s information included in the
property tax statements sent to property owners and taxpayers
by the county auditor. The bill requires the hearing to be set
on a date on or after March 20 of the budget year immediately
preceding the budget year for which the tax is being proposed.
Under current law, notice of a political subdivision’s
proposed property tax public hearing must be published in a
newspaper between 10 and 20 days prior to the public hearing.
Retroactive to January 1, 2024, the bill provides that failure
of a newspaper to publish a required notice will not be
considered a failure of a political subdivision to provide
required notice if notice of the public hearing was provided
to each property owner and each taxpayer within the political
subdivision in property tax statements sent by a county auditor
to property owners and taxpayers and the political subdivision
can demonstrate that to the county auditor that the political
subdivision provided sufficient time for the newspaper to
publish the notice.
Retroactive to January 1, 2024, the bill no longer requires a
political subdivision to maintain past property tax statements
on its internet site.
Retroactive to January 1, 2024, the bill requires a
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political subdivision that maintains a social media account
to post notice of the proposed property tax public hearing on
the social media account on a date no later than the date of
publication of the notice. Under current law, notice posted
to social media needed to be posted on the same day as the
publication of the notice.
Retroactive to January 1, 2024, the bill requires, on or
before April 30 of each year, each extension council of each
extension district of the state to prepare annually a budget
for the next fiscal year and to hold a meeting to estimate the
amount of money required to be raised by taxation for financing
the county agricultural extension education program. Under
current law, the budget must be prepared and the meeting must
be held on or before March 15 of each year.
Retroactive to January 1, 2024, the bill requires
certification of a school board of directors’ intent to
participate in the instructional support program for a budget
year, the method of funding, and the amount to be raised to be
made to DOM no later than April 30 of the base year. Under
current law, certification must be made to DOM no later than
April 15 of the base year.
Retroactive to January 1, 2024, the bill requires, on or
before April 30 of each year, a county board of supervisors,
with the assistance of the county engineer, to adopt and submit
to the department of transportation for approval the county
secondary road budget for the next fiscal year. Under current
law, a county board of supervisors must adopt and submit the
county secondary road budget on or before April 15 of each
year.
The bill specifies that pursuant to the general grant of
home rule power conferred by the Constitution of the State
of Iowa and if not inconsistent with the laws of the general
assembly, a county that has designated more than one city to be
a county seat may consolidate or reduce the number of county
seats by ordinance. The bill also repeals 1848 Iowa Acts,
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First Extraordinary Session, chapter 52, which in part required
Lee County to maintain a district court at Fort Madison and the
city of Keokuk, required the clerk of district court to keep
an office at Fort Madison and the city of Keokuk, and required
the sheriff of Lee County to keep an office at Fort Madison and
the city of Keokuk. The provisions related to county seats are
effective upon enactment.
The bill allows a county to collect taxes for a fiscal year
for which no budget has been certified for the county, but
the bill prohibits the county from distributing any funds
collected until the county certifies its budget and transmits
the certified budget to the county auditor. The bill limits
taxes levied by a county whose budget is certified after April
30 to the taxes levied for the previous fiscal year subject to
applicable levy rate limits in Code chapter 331 (county home
rule implementation); however, the amount cannot exceed the
amount the county could collect based on property assessments
for the fiscal year for which the county failed to certify
property taxes. DOM may waive the limitation for a county
if DOM finds, after a showing of evidence by the county,
that failure to certify the budget by April 30 was caused by
any combination of a newspaper failing to publish a notice
of hearing after the county gave the newspaper sufficient
time to publish the notice; a verifiable public emergency or
weather-related event which forced the cancellation of a public
hearing; an illness or unexpected vacancy of one or more board
members causing a lack of a quorum necessary to hold a required
public hearing; or a failure of state software or a state
process. The bill creates similar provisions for a city that
does not certify its budget by April 30. The provisions in the
bill relating to a county or city failing to certify its budget
by April 30 are effective upon enactment.
Under current law, a homeowner is allowed a homestead
tax exemption if the property owner is 65 years of age or
older. The bill makes confidential, subject to exceptions
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detailed in the bill, the names, addresses, and dates of birth
of individuals allowed a homestead tax exemption that are
maintained by a county recorder, county treasurer, county
assessor, city assessor, or other governmental body if the
information was obtained for purposes of allowing a homestead
tax exemption.
Each fiscal year, county auditors are required to make a
report to DOM, on forms provided by DOM, of the valuation by
class of property for each taxing district in the auditor’s
respective county using data transmitted to the auditor by
assessors on an abstract of real property. The bill requires
assessors to transmit and maintain data in the abstract of
real property in a manner that is compatible with software
used by the county auditor and that allows the county auditor
to use the data to file valuation reports to DOM. The bill
also requires county auditors to report the valuations and
revaluations as instructed by DOM.
The bill allows a city to levy at a rate not to exceed
$8.10 per $1,000 of assessed valuation for its general fund
levy if the city’s actual levy rate for the current fiscal
year is $0 per $1,000 of assessed value and the total assessed
value used to calculate taxes for the budget year exceeds
102.75 percent. The provisions in the bill allowing a city
to increase its general fund levy rate to $8.10 per $1,000 of
assessed valuation are effective upon enactment.
Under current law, a municipality with a population equal to
or greater than 15,000 that is using the division of taxes from
tax increment financing for the purpose of public improvements
related to housing is limited to tax collections for that
purpose for a maximum of 10 fiscal years. The bill allows a
municipality of any size to extend such tax collections for
an additional three years if the project for which revenue is
being divided began before January 1, 2018, and all governing
bodies of taxing districts affected by the division of revenue
approve the extension. This provision takes effect upon
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enactment.
2023 Iowa Acts, chapter 71, requires the director of DOM to
annually prepare and file with the general assembly by December
1 a report specifying the updated population thresholds and
detailing the use of certain bond issuance procedures including
the usage of such procedures by counties and cities based on
the population-based limitations and the amount of bonds issued
for each such usage. This requirement takes effect on July 1,
2024. The bill changes the date for the DOM director to file
the report to January 1.
DIVISION V —— COMPENSATION OF ELECTED COUNTY OFFICIALS.
Under current law, each county has a county compensation board
that prepares a recommended compensation schedule for elected
county officers that the county board of supervisors then
reviews. Current law provides procedures and limitations that
both the county compensation board and board of supervisors
must adhere to in determining the final compensation schedule.
The bill allows a board of supervisors to vote to establish
a county compensation board. The county compensation board
shall be composed as provided under current law. The board of
supervisors may also vote to dissolve a county compensation
board. The board of supervisors shall carry out the duties as
the county compensation board if the board of supervisors has
not established or has dissolved a county compensation board.
In setting the salary of the county sheriff, the bill
requires the board of supervisors to set the sheriff’s salary
so that it is comparable to salaries paid to professional law
enforcement administrators and command officers of state public
safety officers and city chiefs of police employed by cities of
similar populations to the county.
The bill requires the county compensation board to provide
documentation to the board of supervisors demonstrating how
the county compensation board determined the recommended
compensation schedule. The bill strikes provisions that
prohibit the board of supervisors from exceeding the
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compensation schedule recommended by the county compensation
board or from reducing the amount of the recommended
compensation schedule unless the amount of salary increase
proposed for each elected county officer is reduced by an equal
percentage. The bill allows the board of supervisors to set
compensation lower than the compensation set forth in the
current compensation schedule, but provides that the proposed
compensation for a position may be reduced when the position is
reduced to part-time. The bill makes conforming changes.
DIVISION VI —— COUNTY AND CITY PROPERTY TAXES. Under
current law, a city’s adjusted city general fund levy rate will
either be a default levy rate of $8.10 per $1,000 of assessed
property value or a levy rate calculated based on the city’s
actual property tax dollars certified for levy for the current
fiscal year, the total assessed valuation of property in the
city, and the amount of growth in the total assessed valuation
of property in the city from the current fiscal year to the
upcoming fiscal year. If a city had 3 percent growth or less
from the previous year, then the levy rate is the same as the
previous year’s levy rate or the default levy rate of $8.10
per $1,000 of assessed property value, whichever is greater.
If the city’s growth exceeds 3 percent, but is less than 6
percent, then the levy rate is the city’s levy rate for the
previous year divided by 103 percent and then multiplied by
1,000. If the city’s growth is equal to or exceeds 6 percent,
then the levy rate is the city’s levy rate for the previous
year divided by 103 percent and then multiplied by 1,000.
County tax levies are determined in a similar manner, except
the default levy rate is either $3.50 per $1,000 of assessed
property value or a calculated levy rate for general county
services and a default levy rate of $3.95 per $1,000 of
assessed property value or a calculated levy rate for rural
county services.
The bill adjusts the levy rates for cities and counties so
cities and counties use the greater of last year’s levy rate
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or the default levy rate if growth is equal to or less than
2.75 percent, or have a calculated levy rate equal to 1,000
multiplied by the quotient of the previous year’s levy rate
divided by the following: 101 percent if growth exceeds 2.75
percent but is less than 4 percent; 102 percent if growth is
equal to or exceeds 4 percent but is less than 6 percent; or 103
percent if growth is equal to or exceeds 6 percent.
This division of the bill applies to taxes and budgets for
fiscal years beginning on or after July 1, 2025.
DIVISION VII —— PROPERTY TAX ASSESSMENT LIMITATIONS. Public
utility companies operating under Code chapter 428 and pipeline
companies operating under Code chapter 438 are assessed by
the department of revenue (IDOR) for property tax purposes
on all property, real and personal, owned by the company and
used in the operation of the company’s specified utility. The
valuation determined by IDOR is then reported and apportioned
to the local taxing districts and the value is taxed in the
same manner as other property within the applicable taxing
districts.
The bill removes public utility company property assessed
under Code chapter 428 and pipeline company property assessed
under Code chapter 438 from the calculation of the assessment
limitation for other centrally assessed utility company
property. The bill also reduces the percentage of actual value
at which property valued by IDOR pursuant to Code chapters 428
and 438 is assessed by 2 percent each year until January 1,
2029. For assessments on or after January 1, 2029, property
valued by IDOR pursuant to Code chapters 428 and 438 will be
assessed at 90 percent.
The division applies to assessment years beginning on or
after January 1, 2025.
DIVISION VIII —— TAXPAYER RELIEF FUND. Under current law,
if the actual net revenue for the general fund of the state
(GF) for a fiscal year plus the GF surplus, if any, is less
than 103.5 percent of the actual net revenue for the GF for
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the prior fiscal year, there is transferred from the taxpayer
relief fund (TRF) to the GF an amount equal to the difference,
not to exceed an amount necessary to increase the GF ending
balance for the fiscal year to 1 percent of the adjusted
revenue estimate, as defined for purposes of the GF expenditure
limitation.
The bill strikes this provision, and instead provides that
if the actual net revenue for the GF for a fiscal year is
less than the net GF appropriation for the fiscal year, as
defined in the bill, there is transferred from the TRF to the
GF an amount equal to 50 percent of the difference. The GF
expenditure limitation amount is not readjusted to include
the anticipated transfer (Code section 8.54(5)(b)). These
provisions are repealed July 1, 2029.
DIVISION IX —— CORRECTIVE PROVISION. The bill makes a
technical correction to 2024 Iowa Acts, Senate File 574, if
enacted, by striking a reference to Code section 91.1 in new
Code section 15.491 and inserting Code section 9I.1.
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LSB 6385SV (1) 90
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