HF 718 — A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver’s licenses and nonoperator’s identification cards, modifying provisions relating to certain writing fees, modifying certain bonding procedures, making penalties applicable, and including effective date, applicability, and retroactive applicability provisions.

For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 shall also include property tax dollar amounts levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023.

(3) (a) (i) In addition to the limitation under subparagraph (2), if the county’s actual levy rate imposed under this paragraph for the current fiscal year is three dollars and ninety-five cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes for rural county services under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes for rural county services for the current fiscal year, the levy rate imposed under this subsection 2 for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by one hundred two of the total assessed value used to calculate taxes for rural county services for the current fiscal year.

(ii) For the budget year beginning July 1, 2024, only, the county’s actual levy rate imposed under this subsection 2 for the current fiscal year shall also include the amount per thousand dollars of assessed value levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023, and the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 shall also include amounts levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023.

(b) (i) In addition to the limitation under subparagraph (2), if the county’s actual levy rate imposed under this subsection 2 for the current fiscal year is three dollars and ninety-five cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes for rural county services under this paragraph for the budget year is equal to or exceeds one hundred six percent of the House File 718, p.

7 total assessed value used to calculate taxes for rural county services for the current fiscal year, the levy rate imposed under this subsection 2 for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by one hundred three of the total assessed value used to calculate taxes for rural county services for the current fiscal year.

(ii) For the budget year beginning July 1, 2024, only, the county’s actual levy rate imposed under this subsection 2 for the current fiscal year shall also include the amount per thousand dollars of assessed value levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023, and the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 shall also include amounts levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023.

(4) Subject to adjustment under subparagraph (2), for purposes of this paragraph, “adjusted rural county basic levy rate” means a levy rate per thousand dollars of assessed value equal to the sum of three dollars and ninety-five cents plus the amount per thousand dollars of assessed value levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023.

c.

For each fiscal year beginning on or after July 1, 2028, three dollars and ninety-five cents per thousand dollars of assessed value.

SectionFor 257.3,purposes subsectionof 2,this paragraphssection: a and b, Code 2023, are amended to read as follows:

Notwithstanding“Budget subsectionyear” 1,is a reorganized school district shall cause a foundation property tax of four three dollars and forty cents per thousand dollars of assessed valuation to be levied on all taxable property which, in the fiscal year precedingbeginning aduring reorganization, was within a school district affected by the reorganizationcalendar asyear defined in sectionwhich 275.1, or in the year preceding a dissolutionbudget wasis acertified. part of a school district that dissolved if the dissolution proposal has been approved by the director of the department of education pursuant to section 275.55.

HFb. 718 (3) 90 -1- md/jh/md 1/30 H.F.

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

In succeeding school years, the foundation property tax levy on that portion shall be increased to the rate of four three dollars and ninety cents per thousand dollars of assessed valuation the first succeeding year, five four dollars and fifteen cents per thousand dollars of assessed valuation the second succeeding year, and five four dollars and forty cents per thousand dollars of assessed valuation the third succeeding year and each year thereafter.

3.

Section 331.424, unnumbered paragraph 1, Code 2023, is amended to read as follows:

To the extent that the basic levies under section 331.423 are insufficient to meet the county’s needs for the following House File 718, p.

8 services, the board may certify supplemental levies as follows:

Sec.

Section 425A.3,331.425, subsectionunnumbered paragraph 1, Code 2023, is amended to read as follows:

1.The board may certify an addition to a levy in excess of the amounts otherwise permitted under sections 331.423, and 331.424, and 331.426 if the proposition to certify an addition to a levy has been submitted at a special levy election and received a favorable majority of the votes cast on the proposition.

TheA familyspecial farmlevy taxelection creditis fundsubject shall be apportioned each year in the manner provided in this chapter so as to give a credit against the taxfollowing: on each eligible tract of agricultural land within the several school districts of the state in which the levy for the general school fund exceeds five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”.

The amount of the credit on each eligible tract of agricultural land shall be the amount the tax levied for the general school fund exceeds the amount of tax which would be levied on each eligible tract of agricultural land were the levy for the general school fund five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, for the previous year.

However, in the case of a deficiency in the family farm tax credit fund to pay the credits in full, the credit on each eligible tract of agricultural land in the state shall be proportionate and applied as provided in this chapter.

Section 425A.5,331.425, Code 2023, is amended toby readadding asthe follows:following new subsection:

425A.5NEW ComputationSUBSECTION by. county auditor.

The6. family farm tax credit allowed each year shall be computed as follows:

Ona. or before April 1, the county auditor shall list by school districts all tracts of agricultural land which are entitled to credit, the taxable value for the HF 718 (3) 90 -2- md/jh/md 2/30 H.F.

718If previous year, the budgetaddition fromto eacha school district for the previous year, and the tax rate determined for the general fund of the school district in the manner prescribed in section 444.3 for the previous year, and if the tax rate is in excess of five dollars and forty cents per thousand dollars of assessed value the levy rateapproved under this section 257.3, subsection 1, paragraph “a”, the auditor shall multiply the tax levy which is indue excessto ofunusual fivecircumstances dollarsresulting andfrom forty cents per thousand dollars of assessed value the levyfollowing, rate under section 257.3, subsection 1, paragraph “a”, by the totalduration taxable value of thesuch agriculturalapproval landat entitledelection toshall creditnot inexceed the schoolfollowing district,period and on or before April 1, certify the total amount of credityears: and the total number of acres entitled to the credit to the department of revenue.

(1) Unusual problems relating to major new functions required by state law, three years.

(2) Unusual need for a new program which will provide substantial benefit to county residents, if the county establishes the need and the amount of necessary increased cost, one year.

b.

For an election to approve an addition to a levy for a reason specified in paragraph “a” or as the result of a natural disaster, the ballot shall include a statement of the major reasons for the difference between the proposed basic tax rate and the maximum basic tax rate, including a description of the major new functions required by state law and the specific new costs to the county to implement the new functions, a description of the new program that will provide substantial benefits to county residents and specific new costs to the county for the program, or the conditions and damage resulting from the natural disaster that the county must remedy.

Section 426.3,331.434, unnumbered paragraph 1, Code 2023, is amended to read as follows:

426.3Annually, Wherethe creditboard given.of each county, subject to section 331.403, subsection 4, sections 331.423 through 331.426 331.425, section 331.433A, and other applicable state law, shall prepare and adopt a budget, certify taxes, and provide House File 718, p.

The9 agriculturalappropriations land credit fund shall be apportioned each year in the manner hereinafter provided so as tofollows: give a credit against the tax on each tract of agricultural lands within the several school districts of the state in which the levy for the general school fund exceeds five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”;

the amount of such credit on each tract of such lands shall be the amount the tax levied for the general school fund exceeds the amount of tax which would be levied on said tract of such lands were the levy for the general school fund five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, for the previous year, except in the case of a deficiency in the agricultural land credit fund to pay said credits in full, in which case the credit on each eligible tract of such lands in the state shall be proportionate and shall be applied as hereinafter provided.

Section 426.6,331.435, subsection 1, Code 2023, is amended HFto 718read (3)as 90follows: -3- md/jh/md 3/30 H.F.

718 to read as follows:

The agriculturalboard landmay taxamend creditthe allowedadopted eachcounty yearbudget, shallsubject beto computedsections as331.423 follows:through 331.426 331.425 and other applicable state law, to permit increases in any class of proposed expenditures contained in the budget summary published under section 331.434, subsection 3.

On or before April 1, the county auditor shall list by school districts all tracts of agricultural lands which are entitled to credit, together with the taxable value for the previous year, together with the budget from each school district for the previous year, and the tax rate determined for the general fund of the district in the manner prescribed in section 444.3 for the previous year, and if such tax rate is in excess of five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, the auditor shall multiply the tax levy which is in excess of five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, by the total taxable value of the agricultural lands entitled to credit in the district, and on or before April 1, certify the amount to the department of revenue.

ADJUSTMENTSection OF331.441, CALCULATIONS.subsection 2, paragraph c, subparagraph (11), Code 2023, is amended by striking the subparagraph.

For property tax credits under chapters 425A and 426 for property taxes due and payable in the fiscal year beginning July 1, 2023, the tax rate determined for the general fund of the school district in the manner prescribed in section 444.3 for the previous year shall be determined using the applicable property tax levy rate under section 257.3, as amended in this division of this Act.

EFFECTIVEREPEAL. DATE.

ThisSection division331.426, ofCode this2023, Act,is beingrepealed. deemed of immediate importance, takes effect upon enactment.

TheThis followingdivision applyof Julythis 1,Act 2023,applies forto schooltaxes budgetand budgets for fiscal years beginning on or after thatJuly date:1, 2024.

1.DIVISION II CITY PROPERTY TAXES AND BUDGETS Sec.

The section of this division of this Act amending section 257.3, subsection 1, paragraph “a”.

2.

The section of this division of this Act amending section 257.3, subsection 2, paragraphs “a” and “b”.

DIVISION II PROPERTY TAX LIMITATION HF 718 (3) 90 -4- md/jh/md 4/30 H.F.

718 Sec.

Section 443.2,24.48, subsection 1,5, Code 2023, is amended toby readadding asthe follows:following new paragraph:

1.NEW PARAGRAPH .

Beforec. the first day of July in each year, the county auditor shall transcribe the assessments of the townships and cities into a book or record, to be known as the tax list, properly ruled and headed, with separate columns, in which shall be entered the names of the taxpayers, descriptions of lands, number of acres and value, numbers of city lots and value, and each description of tax, with a column for polls and one for payments, and shall complete it by entering the amount due on each installment, separately, and carrying out the total of both installments.

TheFor totalbudgets offor allfiscal columnsyears ofbeginning eachon pageor after July 1, 2024, if the political subdivision is a city, a suspension of eachthe bookstatutory orproperty othertax recordlevy limitations under this section shall balanceonly withbe approved by the taxstate totals.appeal board in the event of a natural disaster or under the reasons specified in subsection 1, paragraph “c” or “f”.

After computing the amount of tax due and payable on each property, the county auditor shall round the total amount of tax due and payable on the property to the nearest even whole dollar and, if applicable, reduce the amounts due and payable as required under section 444.25.

Section 444.1,28M.5, subsection 1, Code 2023, is amended to read as follows:

444.11. Basis for amount of tax.

InThe allcommission, taxingwith districtsthe inapproval of the state,board includingof townships,supervisors schoolof districts,participating cities,counties and counties, when by law then existing the peoplecity arecouncil authorizedof toparticipating determinecities byin vote,the orchapter officers28E areagreement, authorizedmay tolevy estimateannually or determine, a ratetax ofnot taxationto requiredexceed forninety-five anycents publicper purpose,thousand suchdollars rateof shall in all cases be estimated and based upon the adjustedassessed taxablevalue valuation of suchall taxingtaxable districtproperty forin thea precedingregional calendartransit yeardistrict and subject to the limitationextent ofprovided sectionin 444.25.this section.

The chapter 28E agreement may authorize the commission to levy the tax at different rates within the participating cities and counties in amounts sufficient to meet the revenue responsibilities of such cities and counties as allocated in the budget adopted by the commission.

However, for a city participating in a regional transit district, the House File 718, p.

10 total of all the tax levies imposed in the city pursuant to section 384.12, subsection 10 1, and this section shall not exceed the aggregate of ninety-five cents per thousand dollars of the assessed value of all taxable property in the participating city.

Section 444.2,37.8, Code 2023, is amended to read as follows:

444.237.8 AmountsLevy certifiedfor inCost dollars.of development, operation, and maintenance.

WhenFor anthe authorizeddevelopment, taxoperation, rateand withinmaintenance of a taxingbuilding district,or includingmonument townships,constructed, schoolpurchased, districts,or cities,donated andunder counties,this haschapter, beena thuscity determinedmay aslevy provideda bytax law,not to exceed eighty-one cents per thousand dollars of assessed value on all the officertaxable orproperty HFwithin 718the (3)city, 90as -5-provided md/jh/mdin 5/30section H.F.384.12, subsection 2 utilize taxes levied under section 384.1.

718 officers charged with the duty of certifying the authorized rate to the county auditor or board of supervisors shall, before certifying the rate, compute upon the adjusted taxable valuation of the taxing district for the preceding fiscal year, the amount of tax the rate will raise, stated in dollars, subject to the limitation of section 444.25, and shall certify the computed amount in dollars and not by rate, to the county auditor and board of supervisors.

Section 444.3,384.1, Code 2023, is amended to read as follows:

444.3384.1 ComputationTaxes ofcertified. rate.

When1. the valuations for the several taxing districts shall have been adjusted by the several boards for the current year, the county auditor shall thereupon apply such a rate, not exceeding the rate authorized by law, as will raise the amount required for such taxing district, and no larger amount, subject to the limitation under section 444.25.

ForA purposescity ofmay computingcertify thetaxes rateto underbe thislevied section,by the adjustedcounty taxableon valuationall oftaxable the property ofwithin a taxing district does not include the valuationcity oflimits, propertyfor ofall acity railwaygovernment corporationpurposes. or its trustee which corporation has been declared bankrupt or is in bankruptcy proceedings.

NothingHowever, in the preceding2. sentence exempts the property of such railway corporation or its trustee from taxation and the rate computed under this section shall be levied on the taxable property of such railway corporation or its trustee.

Notwithstanding subsection 3, the tax levied by a city on tracts of land and improvements thereon used and assessed for agricultural or horticultural purposes, shall not exceed three dollars and three-eighths cents per thousand dollars of assessed value in any fiscal year.

Improvements located on such tracts of land and not used for agricultural or horticultural purposes and all residential dwellings are subject to the same rate of tax levied by the city on all other taxable property within the city.

A 3.

a.

For fiscal years beginning before July 1, 2024, a city’s tax levy for the general fund shall not exceed eight dollars and ten cents per thousand dollars of taxable assessed value used to calculate taxes in any tax fiscal year, except for the levies authorized in section 384.12.

b.

Subject to adjustment under paragraph “c”, subparagraph (2), for purposes of this subsection, “adjusted city general fund levy rate” means a levy rate per thousand dollars of assessed value equal to the sum of eight dollars and ten cents House File 718, p.

11 per thousand dollars of assessed value plus the sum of the following for the city, as applicable:

(1) The amount per thousand dollars of assessed value levied by or on behalf of the city under section 384.8, Code 2023, for the fiscal year beginning July 1, 2023.

(2) The total amount per thousand dollars of assessed value levied by or on behalf of the city under section 384.12, subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and 20, Code 2023, for the fiscal year beginning July 1, 2023.

(3) The amount per thousand dollars of assessed value levied by the city under section 24.48, Code 2023, for the fiscal year beginning July 1, 2023.

c.

(1) For each fiscal year beginning on or after July 1, 2024, but before July 1, 2028, subject to subparagraph (3), a city’s tax levy for the general fund, except for levies authorized in section 384.12, shall not exceed in any tax year the greater of eight dollars and ten cents per thousand dollars of assessed value used to calculate taxes for the budget year and the adjusted city general fund levy rate, as adjusted under subparagraph (2), if applicable.

(2) (a) If the total assessed value used to calculate taxes under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the adjusted city general fund levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred two percent of the total assessed value used to calculate such taxes for the current fiscal year.

For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied under the provisions specified in paragraph “b”, subparagraphs (1), (2), and (3).

(b) If the total assessed value used to calculate taxes under this paragraph for the budget year is equal to or exceeds House File 718, p.

12 one hundred six percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the adjusted city general fund levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred three percent of the total assessed value used to calculate such taxes for the current fiscal year.

For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied under the provisions specified in paragraph “b”, subparagraphs (1), (2), and (3).

(3) (a) (i) In addition to the limitation under subparagraph (2), if the city’s actual levy rate imposed under this subsection for the current fiscal year is eight dollars and ten cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the levy rate imposed under this paragraph for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred two percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year.

(ii) For the budget year beginning July 1, 2024, only, the city’s actual levy rate imposed under this subsection for the current fiscal year shall also include the sum of the amounts per thousand dollars of assessed value specified in paragraph “b”, subparagraphs (1), (2), and (3), and the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied by the city under the provisions specified in paragraph “b”, subparagraphs (1), (2), and (3).

House File 718, p.

13 (b) (i) In addition to the limitation under subparagraph (2), if the city’s actual levy rate imposed under this subsection for the current fiscal year is eight dollars and ten cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes under this paragraph for the budget year is equal to or exceeds one hundred six percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the levy rate imposed under this paragraph for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred three percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year.

(ii) For the budget year beginning July 1, 2024, only, the city’s actual levy rate imposed under this subsection for the current fiscal year shall also include the sum of the amounts per thousand dollars of assessed value specified in paragraph “b”, subparagraphs (1), (2), and (3), and the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied by the city under the provisions specified in paragraph “b”, subparagraphs (1), (2), and (3).

d.

For each fiscal year beginning on or after July 1, 2028, a city’s tax levy rate for the general fund, except for levies authorized in section 384.12, shall not exceed eight dollars and ten cents per thousand dollars of assessed value used to calculate taxes in any fiscal year.

4.

For purposes of this section:

a.

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

b.

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

Section 444.22,384.12, Code 2023, is amended to read as follows:

444.22384.12 AnnualAdditional levy.taxes.

InA eachcity yearmay thecertify, directorfor of revenue shall fix the rate in percentage to be levied upon the assessed valuation of the taxable property of the state necessary to raise the amount for general statefund purposeslevy, astaxes shallwhich beHouse designatedFile by718, thep. department of management, subject to the limitation under section 444.25 .

Sec.14 are not subject to the limit provided in section 384.1, and which are in addition to any other moneys the city may wish to spend for such purposes, as follows:

16.

NEW SECTION.

444.25 Property tax amount limitation HF 718 (3) 90 -6- md/jh/md 6/30 H.F.

718 —— reduction.

ForA purposestax not to exceed thirteen and one-half cents per thousand dollars of thisassessed section:value for the support of instrumental or vocal musical groups, one or more organizations which have tax-exempt status under section 501(c)(3) of the Internal Revenue Code and are organized and operated exclusively for artistic and cultural purposes, or any of these purposes, subject to the following:

“BaseUpon year”receipt meansof a petition valid under the assessmentprovisions yearof precedingsection 362.4, the assessmentcouncil yearshall usedsubmit to calculatethe propertyvoters taxesat duethe andnext payableregular incity election the applicablequestion fiscalof year.whether a tax shall be levied.

“LocalIf taxing authority” means a city,majority county,approves communitythe college,levy, schoolit district,may orbe otherimposed. governmental subdivision located in this state and authorized to certify a levy on property located within such authority.

“NewThe construction”levy meanscan buildings,be structures,eliminated orby improvementsthe constructedsame orprocedure relocatedof onpetition orand madeelection. to the parcel.

“Parcel”A meanstax eachauthorized separateby iteman shownelection onheld theprior taxto list,the manufacturedeffective ordate mobileof homethe taxcity list,code schedulemay ofbe assessment,continued oruntil scheduleeliminated ofby ratethe council, or charge.by petition and election.

e.

“Property taxes” means annual ad valorem taxes imposed on the parcel which are collectable by the county treasurer following application of all applicable exemptions and credits, and shall not include special assessments, amounts levied under chapter 468, or taxes under chapter 435.

“Property taxes” also do not include taxes levied as the result of a property tax levy approved at election or that portion of any property tax levy imposed that is for the payment of principal and interest on bonds or other indebtedness the issuance of which was approved at election, including refunding bonds issued for the repayment of bonds that were approved at election.

f.

“Qualified parcel” means a parcel that is not located in an urban renewal area under chapter 403 or an urban revitalization area under chapter 404, is not wind energy conversion property as defined in section 427B.26, and for which none of the following apply:

(1) The parcel changed ownership during the base year.

(2) New construction occurred on the parcel during the base year.

(3) The parcel’s assessment for the base year was a partial assessment as the result of incomplete new construction or HF 718 (3) 90 -7- md/jh/md 7/30 H.F.

718 improvements.

(4) The parcel was omitted from assessment or fraudulently withheld from assessment in the base year.

(5) The parcel’s property taxes were suspended or abated under sections 427.8, 427.9, and 427.10.

(6) The parcel’s classification is different from the base year.

A tax not to exceed eighty-one cents per thousand dollars of assessed value for development, operation, and maintenance of a memorial building or monument, subject to the provisions of subsection 1.

3.

A tax not to exceed thirteen and one-half cents per thousand dollars of assessed value for support of a symphony orchestra, subject to the provisions of subsection 1.

4.

A tax not to exceed twenty-seven cents per thousand dollars of assessed value for the operation of cultural and scientific facilities, subject to the provisions of subsection 1, except that the question may be submitted on the council’s own motion.

5.

A tax to aid in the construction of a county bridge, subject to the provisions of subsection 1, except that the question must be submitted at a special election.

The expense of a special election under this subsection must be paid by the county.

The notice of the special election must include full details of the proposal, including the location of the proposed bridge, the rate of tax to be levied, and all other conditions.

House File 718, p.

15 6.

A tax to aid a company incorporated under the laws of this state in the construction of a highway or combination bridge across any navigable boundary river of this state, commencing or terminating in the city and suitable for use as highway, or for both highway and railway purposes.

This tax levy is subject to the provisions of subsections 1 and 5.

The levy is limited to one dollar and thirty-five cents per thousand dollars of the assessed value of taxable property in the city.

The estimated cost of the bridge must be at least ten thousand dollars, and the city aid may not exceed one-half of the estimated cost.

The notice of the special election must include the name of the corporation to be aided, and all conditions required of the corporation.

Tax moneys received for this purpose may not be paid over by the county treasurer until the city has filed a statement that the corporation has complied with all conditions.

7.

If a tax has been voted for aid of a bridge under subsection 6 , a further tax may be voted for the purpose of purchasing the bridge, subject to the provisions of subsection 1.

The levy under this subsection is limited to three dollars and thirty-seven and one-half cents per thousand dollars of the assessed value of the taxable property in the city, payable in not less than ten annual installments.

8.

A tax for the purpose of carrying out the terms of a contract for the use of a bridge by a city situated on a river over which a bridge has been built.

The tax may not exceed sixty-seven and one-half cents per thousand dollars of assessed value each year.

9.

A tax for aid to a public transportation company, subject to the procedure provided in subsection 1, except the question must be submitted at a special election.

The levy is limited to three and three-eighths cents per thousand dollars of assessed value.

In addition to any other conditions the following requirements must be met before moneys received for this purpose may be paid over by the county treasurer:

ForThe propertypublic taxestransportation duecompany andshall payableprovide inthe fiscalcity yearswith beginningcopies onof orstate afterand Julyfederal 1,income 2024,tax ifreturns for the amountfive ofyears propertypreceding taxesthe otherwiseyear calculatedfor towhich bepayment dueis andcontemplated payableor onfor asuch qualifiedlesser parcelperiod of residentialtime propertyas or agricultural property exceeds one hundred three percent of the actualcompany amounthas ofbeen property taxes due and payable on the parcel in theHouse immediatelyFile preceding718, fiscalp. year, such amount shall be reduced as provided in subsection 3.

If,16 however,operation. improvements or renovations, not amounting to new construction, occurs on the property during the base year, the threshold amount of property taxes shall be one hundred three percent plus the percentage of the parcel’s taxable value attributable to the improvements or renovations.

Improvements or renovations do not include normal and necessary repairs to an existing building or improvement, not amounting to structural replacements or modifications.

ForThe propertycity taxesshall, duein andany payablegiven inyear, fiscalbe yearsauthorized beginningto onpay orover afteronly Julysuch 1,sums 2024,as ifwill theyield amountnot ofto propertyexceed taxestwo otherwisepercent calculatedof tothe bepublic duetransportation andcompany’s payableinvestment onas athe qualifiedsame parcelis ofvalued commercialin propertyits ortax industrialdepreciation propertyschedule, exceedsprovided onethat hundredcorporate eightprofits percentand oflosses for the actualfive amountpreceding ofyears propertyor taxesfor duesuch andlesser payableperiod onof thetime parcelas in the immediatelycompany precedinghas fiscalbeen year,in suchoperation amount shall benot reducedaverage asin providedexcess inof subsectiona 3.two percent net return.

If,Taxes however,levied improvementsunder orthis renovations,subsection may not amounting to new construction, occurs on the property during the base year, the threshold amount of property taxes shall be oneused hundredto eightsubsidize percentlosses plusincurred theprior percentageto of the parcel’selection taxablerequired valueby attributablethis tosubsection the. improvements or renovations.

Improvements10. or renovations do not include normal and necessary HF 718 (3) 90 -8- md/jh/md 8/30 H.F.

7181. repairs to an existing building or improvement, not amounting to structural replacements or modifications.

c.A tax for the operation and maintenance of a municipal transit system or for operation and maintenance of a regional transit district, and for the creation of a reserve fund for the system or district, in an amount not to exceed ninety-five cents per thousand dollars of assessed value each year, when the revenues from the transit system or district are insufficient for such purposes.

Property11. taxes levied by a political subdivision that did not exist for the immediately preceding fiscal year shall not be included in the calculation of the property tax to be due and payable for the fiscal year and shall not be reduced under subsection 3.

If a city has entered into a lease of a building or complex of buildings to be operated as a civic center, a tax sufficient to pay the installments of rent and for maintenance, insurance and taxes not included in the lease rental payments.

12.

A tax not to exceed thirteen and one-half cents per thousand dollars of assessed value each year for operating and maintaining a civic center owned by a city.

13.

A tax not to exceed six and three-fourths cents per thousand dollars of assessed value for planning a sanitary disposal project.

14.

2.

A tax not to exceed twenty-seven cents per thousand dollars of assessed value each year for an aviation authority as provided in section 330A.15.

15.

A tax not to exceed six and three-fourths cents per thousand dollars of assessed value each year for a levee improvement fund in special charter cities as provided in section 420.155.

16.

A tax not to exceed twenty and one-half cents per thousand dollars of assessed value each year to maintain an institution received by gift or devise, subject to an election as required under subsection 1.

House File 718, p.

17 17.

A tax to pay the premium costs on tort liability insurance, property insurance, and any other insurance that may be necessary in the operation of the city, the costs of a self-insurance program, the costs of a local government risk pool and amounts payable under any insurance agreements to provide or procure such insurance, self-insurance program, or local government risk pool.

18.

A tax to fund an emergency medical services district under chapter 357G.

19.

4.

A tax that exceeds any tax levy limit within this chapter, provided the question has been submitted at a special levy election and received a simple majority of the votes cast on the proposition to authorize the enumerated levy limit to be exceeded for the proposed budget year.

IfThe theelection totalmay amountbe ofheld propertyas taxesspecified duein andthis payablesubsection onif thenotice parcelis exceedsgiven by the applicablecity thresholdcouncil, fornot thelater parcelthan underforty-six subsectiondays 2,before the amountfirst ofTuesday propertyin taxesMarch, due and payable to each taxing authority that certified for levy property taxes on the parcelcounty incommissioner excess of theelections applicable threshold percentage of such amount levied by that taxing authority on the parcelelection inis theto immediately preceding fiscal year shall be reducedheld. by the amount by which the parcel’s total amount of property taxes due and payable for all taxing authorities exceeds the applicable threshold for the parcel under subsection 2.

TheAn amountelection ofunder thethis reductionsubsection shall be proportionatelyheld appliedon among the variousfirst leviesTuesday forin propertyMarch taxes,and orbe portionsconducted thereof,by of those taxing authorities that certified for levy property taxes on the parcelcounty incommissioner excess of theelections applicablein thresholdaccordance percentagewith of such amount levied by that taxing authority on the parcellaw. in the immediately preceding fiscal year.

The reductionsballot question shall be madein bysubstantially the countyfollowing auditorform: prior to delivery of the tax list prescribed in chapter 443 to ensure accurate statement of taxes under section 445.5.

4.WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........? (Vote for only one of the following choices.) CHANGE LEVY AMOUNT ...

TheAdd directorto of the departmentexisting oflevy revenueamount shalla adopttax rulesfor pursuantthe topurpose chapterof 17A.......... to administer and interpret this section.

Sec.(state purpose of proposed levy) at a rate of ...

17.(rate) which will provide an additional $....

Section(amount). 445.5, subsection 1, paragraphs e, f, g, and h, Code 2023, are amended to read as follows:

KEEP CURRENT LEVY ...

Continue under the current maximum rate of ..., providing $....

(amount).

d.

The commissioner of elections conducting the election shall notify the city officials and other county auditors where applicable, of the results within two days of the canvass which shall be held on the second day that is not a holiday following the special levy election, and beginning no earlier than 1:00 p.m.

on that day.

TheNotice complete name of all taxing authorities receiving a tax distribution, the amountelection ofshall thebe distribution,published thetwice amountin ofHouse HFFile 718718, (3)p. 90 -9- md/jh/md 9/30 H.F.

71818 anyaccordance reductionwith resultingthe fromprovisions of section 444.25,362.3, andexcept that the percentagefirst distributionsuch fornotice eachshall namedbe authority,given listedat fromleast thetwo highestweeks tobefore the lowestelection. distribution percentage.

The consolidatedcost levy rate for one thousand dollars of taxable valuation multiplied by the taxableelection valuationshall tobe produceborne theby gross taxes levied before application of credits against levied taxes for the previouscity. and current fiscal years and before any reduction resulting from section 444.25 .

The itemizedelection creditsprovisions againstof leviedthis taxessubsection deductedshall fromsupersede theother grossprovisions taxesfor leviedelections inonly order to produce the netextent taxesnecessary owedto forcomply thewith previous and current fiscal years and the amountprovisions of anythis reductionssubsection. under section 444.25 for previous and current fiscal years.

The totalprovisions amount of taxesthis leviedsubsection byapply eachto taxingall authoritycities, inhowever theorganized, previousincluding fiscalspecial yearcharter andcities thewhich currentmay fiscaladopt yearordinances andwhere thenecessary difference between the two amounts, expressed as a percentage increase or decrease, and the amount of any reduction to acarry taxingout authoritythese resultingprovisions. from section 444.25.

i.

The council shall certify the city’s budget with the tax askings not exceeding the amount approved by the special levy election.

20.

A tax not to exceed twenty-seven cents per thousand dollars of assessed value for support of a public library, subject to petition and referendum requirements of subsection 1, except that if a majority approves the levy, it shall be imposed.

21.

5.

A tax for the support of a local emergency management commission established pursuant to chapter 29C.

16.

Section 384.24, subsection 4, paragraph i, Code 2023, is amended by striking the paragraph.

Sec.

17.

Section 384.110, Code 2023, is amended to read as follows:

384.110 Insurance, self-insurance, and risk pooling funds.

A city may credit funds to a fund or funds for the purposes authorized by section 364.4, subsection 5;

section 384.12, subsection 17 3;

or section 384.24, subsection 3, paragraph “s”.

Moneys credited to the fund or funds, and interest earned on such moneys, shall remain in the fund or funds until expended for purposes authorized by section 364.4, subsection 5;

section 384.12, subsection 17 3;

or section 384.24, subsection 3, paragraph “s”.

Sec.

SectionREPEAL. 445.57, subsection 1, Code 2023, is amended to read as follows:

1.Section 384.8, Code 2023, is repealed.

On or before the tenth day of each month, the county treasurer shall apportion all taxes collected during the preceding month, except partial payment amounts collected pursuant to section 445.36A, subsection 1, partial payments collected and not yet designated by the county treasurer for apportionment pursuant to section 445.36A, subsection 2, partial payments collected pursuant to section 435.24, subsection 6, paragraph “a”, and partial payments collected and not yet designated by the county treasurer for apportionment pursuant to section 435.24, subsection 6, paragraph “b”, among the several funds to which they belong according to the amount levied for each fund, as adjusted under section 444.25, if applicable, and shall apportion the interest, fees, and costs on the taxes to the general fund, and shall enter those amounts upon the treasurer’s cash account, and report the amounts to HF 718 (3) 90 -10- md/jh/md 10/30 H.F.

718 the county auditor.

IMPLEMENTATIONAPPLICABILITY. OF ACT.

This division of this Act applies to taxes and budgets for fiscal years beginning on or after July 1, 2024.

DIVISION III PUBLIC EDUCATION AND RECREATION TAX LEVY House File 718, p.

19 Sec.

20.

Section 300.2, Code 2023, is amended by adding the following new subsection:

NEW SUBSECTION .

4.

A levy under this chapter shall not be approved by the voters on or after the effective date of this division of this Act.

Sec.

21.

EFFECTIVE DATE.

This division of this Act, being deemed of immediate importance, takes effect upon enactment.

DIVISION IV COUNTY SHERIFF FEE REPORT Sec.

22.

Section 331.655, subsection 5, Code 2023, is amended by striking the subsection.

DIVISION V HOMESTEAD PROPERTY TAX CREDIT Sec.

23.

Section 2.48, subsection 3, paragraph f, subparagraph (1), Code 2023, is amended to read as follows:

(1) The homestead tax exemption and credit under chapter 425.

Sec.

24.

Section 25B.7, subsection 2, paragraph a, Code 2023, is amended to read as follows:

a.

Homestead tax credit pursuant to sections section 425.1, sections 425.2 through 425.13, and section 425.15.

Sec.

25.

Section 103.22, subsection 7, Code 2023, is amended to read as follows:

7.

Prohibit an owner of property from performing work on the owner’s principal residence, if such residence is an existing dwelling rather than new construction and is not an apartment that is attached to any other apartment or building, as those terms are defined in section 499B.2, and is not larger than a single-family dwelling, or require such owner to be licensed under this chapter.

In order to qualify for inapplicability pursuant to this subsection, a residence shall qualify for the homestead tax exemption credit.

Sec.

26.

Section 105.11, subsection 3, Code 2023, is amended to read as follows:

3.

Prohibit an owner of property from performing work on the owner’s principal residence, if such residence is an existing dwelling rather than new construction and is not larger than a single-family dwelling, or farm property, excluding commercial or industrial installations or installations in public use House File 718, p.

20 buildings or facilities, or require such owner to be licensed under this chapter.

In order to qualify for inapplicability pursuant to this subsection, a residence shall qualify for the homestead tax exemption credit.

Sec.

27.

Section 331.401, subsection 1, paragraphs e and f, Code 2023, are amended to read as follows:

e.

Adopt resolutions authorizing the county assessor to provide forms for homestead tax exemption and credit claimants as provided in section 425.2 and military service tax exemptions as provided in section 426A.14.

f.

Examine and allow or disallow claims for homestead tax exemption and credit in accordance with section 425.3 and claims for military service tax exemption in accordance with chapter 426A.

The board, by a single resolution, may allow or disallow the exemptions recommended by the assessor.

Sec.

28.

Section 331.512, subsection 3, Code 2023, is amended to read as follows:

3.

Carry out duties relating to the homestead tax exemption and credit and agricultural land tax credit as provided in chapters 425 and 426.

Sec.

29.

Section 331.559, subsection 12, Code 2023, is amended to read as follows:

12.

Carry out duties relating to the administration of the homestead tax exemption and credit and other credits as provided in sections 425.4, 425.5, 425.7, 425.9, 425.10, and 425.25.

Sec.

30.

NEW SECTION.

425.1A Homestead tax exemption.

SectionThe 25B.2,following subsectionexemptions 3,from taxation shall notbe applyallowed in addition to thisthe divisionhomestead credit for an owner that has attained the age of thissixty-five Act.years by January 1 of the assessment year:

a.

For the assessment year beginning January 1, 2023, the eligible homestead, not to exceed three thousand two hundred fifty dollars in taxable value.

b.

For the assessment year beginning January 1, 2024, and each succeeding assessment year, the eligible homestead, not to exceed six thousand five hundred dollars in taxable value.

Section 25B.725B.7, subsection 1, shall not apply to thisthe divisionproperty oftax exemption provided in this Act.section.

House File 718, p.

21 Sec.

31.

Section 425.2, Code 2023, is amended by adding the following new subsection:

NEW SUBSECTION .

3A.

The form for claiming the credit shall also include the ability to claim the exemption under section 425.1A for qualified owners.

If the claim for the homestead credit is allowed, such allowance shall also include allowance of the homestead exemption if the owner meets the age criteria for the exemption.

The homestead exemption shall be allowed for successive years without further filing in the same manner as the homestead credit.

20.32.

APPLICABILITY.Section 425.3, subsection 4, Code 2023, is amended to read as follows:

This4. division of this Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2024.

DIVISIONThe IIIcounty LOCALauditor GOVERNMENTshall BUDGETSforward Sec.the claims to the board of supervisors.

21.The board shall allow or disallow the claims.

SectionIf 24.9,the subsectionboard 1,disallows Codea 2023,claim, isit amendedshall send written notice, by mail, to readthe asclaimant follows:at the claimant’s last known address.

The notice shall state the reasons for disallowing the claim for the credit .

The board is not required to send notice that a claim is disallowed if the claimant voluntarily withdraws the claim.

Sec.

33.

Section 425.4, Code 2023, is amended to read as follows:

425.4 Certification to treasurer.

All claims which have been allowed by the board of supervisors shall be certified on or before August 1, in each year, by the county auditor to the county treasurer, which certificates shall list the total amount of dollars, listed by taxing district in the county, due for homestead tax exemptions and credits claimed and allowed.

The county treasurer shall forthwith then certify to the department of revenue the total amount of dollars, listed by taxing district in the county, due for homestead tax credits claimed and allowed.

Sec.

34.

Section 425.6, Code 2023, is amended to read as follows:

425.6 Waiver by neglect.

If a person fails to file a claim or to have a claim on file with the assessor for the credits provided in this subchapter, the person is deemed to have waived the homestead exemption and credit for the year in which the person failed to file the House File 718, p.

22 claim or to have a claim on file with the assessor.

Sec.

35.

Section 425.7, subsection 3, Code 2023, is amended to read as follows:

3.

a.

If the department of revenue determines that a claim for homestead exemption and credit has been allowed by the board of supervisors which is not justifiable under the law and not substantiated by proper facts, the department may, at any time within thirty-six months from July 1 of the year in which the claim is allowed, set aside the allowance.

Notice of the disallowance shall be given to the county auditor of the county in which the claim has been improperly granted and a written notice of the disallowance shall also be addressed to the claimant at the claimant’s last known address.

The claimant or board of supervisors may appeal to the director of revenue within thirty days from the date of the notice of disallowance.

The director shall grant a hearing and if, upon the hearing, the director determines that the disallowance was incorrect, the director shall set aside the disallowance.

The director shall notify the claimant and the board of supervisors of the result of the hearing.

The claimant or the board of supervisors may seek judicial review of the action of the director of revenue in accordance with chapter 17A.

b.

If a claim is disallowed by the department of revenue and not appealed to the director of revenue or appealed to the director of revenue and thereafter upheld upon final resolution, including any judicial review, any amounts of exemptions allowed and credits allowed and paid from the homestead credit fund including the penalty, if any, become a lien upon the property on which the exemption or credit was originally granted, if still in the hands of the claimant, and not in the hands of a bona fide purchaser, and any amount so erroneously paid including the penalty, if any, shall be collected by the county treasurer in the same manner as other taxes and the collections shall be returned to the department of revenue and credited to the homestead credit fund.

The director of revenue may institute legal proceedings against a homestead credit claimant for the collection of payments made on disallowed credits and the penalty, if any.

If a person makes a false claim or affidavit with fraudulent intent to House File 718, p.

23 obtain the homestead exemption or credit, the person is guilty of a fraudulent practice and the claim shall be disallowed in full.

If the credit has been paid, the amount of the credit plus a penalty equal to twenty-five percent of the amount of credit plus interest, at the rate in effect under section 421.7, from the time of payment shall be collected by the county treasurer in the same manner as other property taxes, penalty, and interest are collected and when collected shall be paid to the director of revenue.

If a homestead exemption or credit is disallowed and the claimant failed to give written notice to the assessor as required by section 425.2 when the property ceased to be used as a homestead by the claimant, a civil penalty equal to five percent of the amount of the disallowed exemption or credit is assessed against the claimant.

Sec.

36.

Section 425.9, subsections 2 and 3, Code 2023, are amended to read as follows:

2.

If any claim for exemption or credit made hereunder has been denied by the board of supervisors, and such action is subsequently reversed on appeal, the exemption or credit shall be allowed on the homestead involved in said appeal, and the director of revenue, the county auditor, and the county treasurer shall make such exemption or credit and change their books and records accordingly.

3.

In the event the appealing taxpayer has paid one or both of the installments of the tax payable in the year or years in question on such homestead valuation, remittance shall be made to such taxpayer of the amount of such credit or exemption .

Sec.

37.

Section 425.10, Code 2023, is amended to read as follows:

425.10 Reversal of allowed claim.

In the event any claim is allowed, and subsequently reversed on appeal, any exemption and credit made under the claim shall be void.

The amount of the erroneous credit shall be charged against the property in question, and the director of revenue, the county auditor, and the county treasurer are authorized and directed to correct their books and records accordingly.

The amount of the erroneous credit, when collected, shall be returned by the county treasurer to the homestead credit House File 718, p.

24 fund to be reallocated the following year as provided in this subchapter.

Taxes due following reversal of a claim for an exemption shall be collected by the county treasurer and allocated to the appropriate taxing entities.

Sec.

38.

Section 425.11, subsection 1, paragraph d, subparagraph (3), Code 2023, is amended to read as follows:

(3) It must not embrace more than one dwelling house, but where a homestead has more than one dwelling house situated thereon, the exemption and credit provided for in this subchapter shall apply to the home and buildings used by the owner, but shall not apply to any other dwelling house and buildings appurtenant.

Sec.

39.

Section 425.11, subsection 1, paragraph e, Code 2023, is amended to read as follows:

e.

“Owner” means the person who holds the fee simple title to the homestead, and in addition shall mean the person occupying as a surviving spouse or the person occupying under a contract of purchase which contract has been recorded in the office of the county recorder of the county in which the property is located;

or the person occupying the homestead under devise or by operation of the inheritance laws where the whole interest passes or where the divided interest is shared only by persons related or formerly related to each other by blood, marriage or adoption;

or the person occupying the homestead is a shareholder of a family farm corporation that owns the property;

or the person occupying the homestead under a deed which conveys a divided interest where the divided interest is shared only by persons related or formerly related to each other by blood, marriage or adoption;

or where the person occupying the homestead holds a life estate with the reversion interest held by a nonprofit corporation organized under chapter 504, provided that the holder of the life estate is liable for and pays property tax on the homestead;

or where the person occupying the homestead holds an interest in a horizontal property regime under chapter 499B, regardless of whether the underlying land committed to the horizontal property regime is in fee or as a leasehold interest, provided that the holder of the interest in the horizontal property regime is liable for and pays property tax on the homestead;

House File 718, p.

25 or where the person occupying the homestead is a member of a community land trust as defined in 42 U.S.C.

§12773, regardless of whether the underlying land is in fee or as a leasehold interest, provided that the member of the community land trust is occupying the homestead and is liable for and pays property tax on the homestead.

For the purpose of this subchapter, the word “owner” shall be construed to mean a bona fide owner and not one for the purpose only of availing the person of the benefits of this subchapter.

In order to qualify for the homestead tax exemption and credit, evidence of ownership shall be on file in the office of the clerk of the district court or recorded in the office of the county recorder at the time the owner files with the assessor a verified statement of the homestead claimed by the owner as provided in section 425.2.

Sec.

40.

Section 425.12, Code 2023, is amended to read as follows:

425.12 Indian land.

Each forty acres of land, or fraction thereof, occupied by a member or members of the Sac and Fox Indians in Tama county, which land is held in trust by the secretary of the interior of the United States for said Indians, shall be given a homestead tax exemption and credit within the meaning and under the provisions of this subchapter.

Application for such homestead tax exemption and credit shall be made to the county auditor of Tama county and may be made by a representative of the tribal council.

Sec.

41.

Section 425.13, Code 2023, is amended to read as follows:

425.13 Conspiracy to defraud.

If any two or more persons conspire and confederate together with fraudulent intent to obtain the exemption or credit provided for under the terms of this subchapter by making a false deed, or a false contract of purchase, they are guilty of a fraudulent practice.

Sec.

42.

Section 425.16, subsection 1, Code 2023, is amended to read as follows:

In addition to the homestead tax credit allowed under section 425.1, subsections 1 through 4, and the homestead exemption under section 425.lA, if applicable, persons who House File 718, p.

26 own or rent their homesteads and who meet the qualifications provided in this subchapter are eligible for a property tax credit for property taxes due or reimbursement of rent constituting property taxes paid.

Sec.

43.

Section 425.17, subsections 4 and 8, Code 2023, are amended to read as follows:

4.

“Homestead” means the dwelling owned or rented and actually used as a home by the claimant during the period specified in subsection 2, and so much of the land surrounding it including one or more contiguous lots or tracts of land, as is reasonably necessary for use of the dwelling as a home, and may consist of a part of a multidwelling or multipurpose building and a part of the land upon which it is built.

It does not include personal property except that a manufactured or mobile home may be a homestead.

Any dwelling or a part of a multidwelling or multipurpose building which is exempt from taxation, except for an exemption under section 425.1A, does not qualify as a homestead under this subchapter.

However, solely for purposes of claimants living in a property and receiving reimbursement for rent constituting property taxes paid immediately before the property becomes tax exempt, and continuing to live in it after it becomes tax exempt, the property shall continue to be classified as a homestead.

A homestead must be located in this state.

When a person is confined in a nursing home, extended-care facility, or hospital, the person shall be considered as occupying or living in the person’s homestead if the person is the owner of the homestead and the person maintains the homestead and does not lease, rent, or otherwise receive profits from other persons for the use of the homestead.

8.

“Property taxes due” means property taxes including any special assessments, but exclusive of delinquent interest and charges for services, due on a claimant’s homestead in this state, but includes only property taxes for which the claimant is liable and which will actually be paid by the claimant.

However, if the claimant is a person whose property taxes have been suspended under sections 427.8 and 427.9, “property taxes due” means property taxes including any special assessments, but exclusive of delinquent interest and charges for services, House File 718, p.

27 due on a claimant’s homestead in this state, but includes only property taxes for which the claimant is liable and which would have to be paid by the claimant if the payment of the taxes has not been suspended pursuant to sections 427.8 and 427.9.

“Property taxes due” shall be computed with no deduction for any credit under this subchapter or for any homestead credit allowed under section 425.1 subchapter I.

Each claim shall be based upon the taxes due during the fiscal year next following the base year.

If a homestead is owned by two or more persons as joint tenants or tenants in common, and one or more persons are not members of claimant’s household, “property taxes due” is that part of property taxes due on the homestead which equals the ownership percentage of the claimant and the claimant’s household.

The county treasurer shall include with the tax receipt a statement that if the owner of the property is eighteen years of age or over, the person may be eligible for the credit allowed under this subchapter.

If a homestead is an integral part of a farm, the claimant may use the total property taxes due for the larger unit.

If a homestead is an integral part of a multidwelling or multipurpose building the property taxes due for the purpose of this subsection shall be prorated to reflect the portion which the value of the property that the household occupies as its homestead is to the value of the entire structure.

For purposes of this subsection, “unit” refers to that parcel of property covered by a single tax statement of which the homestead is a part.

Sec.

44.

Section 435.26, subsection 1, paragraph a, Code 2023, is amended to read as follows:

EachA municipalitymobile shallhome file with the secretary or clerkmanufactured thereofhome thewhich estimatesis requiredlocated tooutside bea mademanufactured inhome sectionscommunity 24.3or throughmobile 24.8,home atpark leastshall twentybe daysconverted beforeto thereal dateestate fixed by lawbeing forplaced certifying the same to the levying board and shall forthwith fix a date for a hearing on the estimates, and shall publish such estimates and any annual levies previously authorized as provided in section 76.2, with a noticepermanent offoundation the time when and the place where such hearing shall be heldassessed notfor lessreal thanestate tentaxes. nor more than twenty days before the hearing.

ProvidedA thathome, inafter municipalitiesconversion ofto lessreal thanestate, twois hundredeligible populationfor suchthe estimateshomestead tax exemption and credit and the noticemilitary ofservice hearingtax shallexemption beas postedprovided in threesections public425.2 placesand inchapter the425, districtsubchapter inI, lieuand ofsection publication.426A.11.

ForA anytaxable othermobile municipalityhome suchor publicationmanufactured shallhome bewhich inis located outside of a newspapermanufactured publishedhome incommunity theor municipality,mobile ifhome any,park ifas not,of thenJanuary in1, a1995, newspaperis also exempt from the permanent foundation requirements of generalthis circulationHouse inFile the718, municipality.p.

Except28 forchapter auntil municipality with property tax revenues for the immediatelyhome precedingis fiscalrelocated. year of less than five thousand dollars, the notice shall also include the information required under paragraph “c”, subparagraph (2), subparagraph divisions (a) through (d), which shall be adopted by resolution of the municipality.

Sec.

45.

Section 435.26A, subsection 3, Code 2023, is amended to read as follows:

3.

After the surrender of a manufactured home’s certificate of title under this section, the manufactured home shall continue to be taxed under section 435.22 and is not eligible for the homestead tax exemption and credit or the military service tax exemption and credit.

A foreclosure action on a manufactured home whose title has been surrendered under this section shall be conducted as a real estate foreclosure.

A tax lien and its priority shall remain the same on a manufactured home after its certificate of title has been surrendered.

Sec.

46.

Section 499A.14, Code 2023, is amended to read as follows:

499A.14 Taxation.

The real estate shall be taxed in the name of the cooperative, and each member of the cooperative shall pay that member’s proportionate share of the tax in accordance with the proration formula set forth in the bylaws, and each member occupying an apartment as a residence shall receive that member’s proportionate homestead tax exemption and credit and each veteran of the military services of the United States identified as such under the laws of the state of Iowa or the United States shall receive as a credit that member’s veterans tax benefit as prescribed by the laws of the state of Iowa.

Sec.

47.

EXISTING HOMESTEAD CLAIMS.

Homestead credit claims approved under chapter 425, subchapter I, prior to and valid on the effective date of this division of this Act shall result in a homestead exemption under chapter 425, subchapter I, as enacted in this division of this Act, without further filing by the claimant if the claimant meets the criteria for the exemption and the assessor has appropriate information to verify such eligibility.

Sec.

48.

EFFECTIVE DATE.

This division of this Act, being deemed of immediate importance, takes effect upon enactment.

Sec.

49.

RETROACTIVE APPLICABILITY.

This division of this Act applies retroactively to assessment years beginning on or after January 1, 2023.

DIVISION VI House File 718, p.

29 MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT Sec.

50.

Section 25B.7, subsection 2, paragraph c, Code 2023, is amended by striking the paragraph.

Sec.

51.

Section 426A.1A, Code 2023, is amended to read as follows:

426A.1A Appropriation.

There For each fiscal year beginning before July 1, 2024, there is appropriated from the general fund of the state the amounts necessary to fund the credits provided under this chapter.

Sec.

52.

Section 426A.2, Code 2023, is amended to read as follows:

426A.2 Military service tax credit.

The For each fiscal year beginning before July 1, 2024, the moneys appropriated under section 426A.1A shall be apportioned each year so as to replace all or a portion of the tax which would be due on property eligible for military service tax exemption in the state, if the property were subject to taxation, the amount of the credit to be not more than six dollars and ninety-two cents per thousand dollars of assessed value of property which would be subject to the tax, except for the military service tax exemption.

Sec.

53.

Section 426A.11, subsections 1 and 2, Code 2023, are amended to read as follows: