SF 2442 — 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.

(2) The tax rate applicable to a tiered pass-through entity sshall h a be tthe hmaximum emstate aincome x i m u m i n c o tax rate under ssection e422.5A c422.5. t i4 2 2 .

5 A 2 2 .

5 .

Section 422.16C, subsection 4, paragraph a.a, Code 2024, is amended to read as follows:

Codea. 2024, is amended to read as follows:

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'staxpayer’s return required under this chapter.

(2) The difference between one hundred percent and the highoothighest individual income tax rate in effect for the tax year.

Section 422.21, subsection 5, Code 2024, is amended tto orread eas aafollows: s f o l l o w s :

The director shall compute the nownew dollar amounts aaas opocificdspecified to be adjusted in section 422,5422.5 by the latest cumulative iinflation nfactor fand l a tfactor a n round off the rresult cto o u l the nnearest o a r G s t one ddollar. o l l aT h e a n n u a c u m u l a i n f l a t i o n f a c t o r s d e t e r m i n e d by the director are not rules as defined in section 17A.2, s u b s e c 1 1 .

nThe Sec.annual and cumulative inflation factors determined by the director are not rules as defined in section 17A.2, subsection 11.

Sec.

5 aas sffollows: o l l o w s :

((3) 3Determine )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 mascimummaximum highest individual income tax rate pursuant to ooctionsection 422.5A for the reviewed year.

((4) 4For )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 nnonresident. o n r e s i d e n t .

(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.

((d) dMultiply )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 ooctionsection 422.5A for the reviewed year.

((5) 5For )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 ooctionsection 422.5A for the reviewed year.

12,12. RATE OF WITHHOLDING.

RATE OF WITHHOLDING.

6 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 AAct. c t .

SSec. e c .

116. 6E F F E C T I V ET h i s d i v io ft h i s A takes effect January 1, 2025.

Sec,EFFECTIVE 17.DATE.

APPLICABILITY, This division of this Act appliestakes toeffect tax years beginning on or after January 1, 2025.

D I V I SI IO N T A R G EJ O B W I T H H O C R E D I T 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.

Section 403.19A, subsection 3, paragraph c, subparagraphs ((1) 1 ) and (2), Code 2024, are amended to read as ffollows: o l l o w s :

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.agreement, Senate File 2442, p.

Senate File 2442, p.

(2) The pilot project city and the economic development authority shall not enter into a withholding agreement after June 30, 2024 2027.

Section 403.19A, subsection 3, paragraph f.f, Code 2024, is amended to read as follows:

Codef. 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 employeremployer’s *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.

DThe Ieconomic Vdevelopment Iauthority Sshall Ialso Iprovide Ieach Fsuch Rassessment Aand Nrecommendation Creport Tto Athe Xdepartment EIof Nrevenue. V E S T S U B S I D I A R I E S Sec.

DIVISION III FRANCHISE TAX —— INVESTMENT SUBSIDIARIES Sec.

Section 422.34, subsection 11, , Code 2024, is amended tto oreadread aas sfollows: f o l l o w s ;

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, subsection 11, , paragraph ,“b”. Sec.

Sec.

Section 422.60, subsection 11, , Code 2024, is amended Senate File 2442, p.

8 tto orread eas aafollows: s f o l l o w s :

^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,A (franchise 1tax )Aaccording financial institution with an investment subsidiary may elect under the regulations of the director to include the income and expensesmeasured ofby annet investmentincome subsidiaryis imposed on thefinancial franchiseinstitutions tax return for the purposeprivilege of imposingdoing thebusiness franchise tax in paragraph , (2) An election made under this paragraphstate 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 institutioninstitutions. unless the director determines that the filing of separate returns will more clearly disclose the taxable income of the investment subsidiary or financial institution.

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.

f,f. (1) ft 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(1) portionA ofExcept theas taxpayer'sprovided expenses which is allocable to an investment in ansubparagraph investment(2), subsidiarya isdeduction anshall amountnot whichbe bearsallowed thefor samethat ratioportion toof the taxpayer'staxpayer’s expenses ascomputed theunder taxpayer'sthis averageparagraph adjustedwhich basis,is asallocable computed pursuant to sectionan 1016 of the Internal Revenue Code, of investment in thatan investment subsidiarysubsidiary. bears to the average adjusted basis for all assets of the taxpayer.

The portion of the taxpayer'staxpayer’s expenses thatwhich 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 andpursuant disallowedto undersection this1016 paragraphof shallthe beInternal added.Revenue Code, of investment in that investment subsidiary bears to the average adjusted basis for all assets of the taxpayer.

(The 2 )A deduction shall not be disallowed and may be subtracted for that portion of the taxpayer'staxpayer’s expenses computedthat under this paragraph which is allocablecomputed toand andisallowed investmentunder inthis anparagraph investmentshall subsidiarybe ifadded. the taxpayer makes an election to include the investment subsidiary on the same return required of the taxpayer pursuant to section 422.62.

(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.

Section 422.63, subsection 11, , Code 2024, is amended tto orread eas aafollows: s f o l l o w s :

a.

If the nnet eincome tof ithe nfinancial cinstitution ois mthe f i n a n i n s t i t u t derived ffrom rits o i t s 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 ddirector. i r e c t o r .

For purposes of apportioning income within and without the state, if an election is made pursuant to section 422.60, subsection 1, paragraph t“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.

S e c .

2 4E F F E C T I V ET h i s d i v i s t h i s A takes effect January 1 , 2025.

24.

EFFECTIVE DATE.

This division of this Act takes effect January 1, 2025.

Sec.

DDIVISION IIV VPROPERTY ITAX SIPROCEDURES VO N P R O P ET A P R O C E D U R E S Sec.

Section 24.2A, subsection 2, paragraph a.a, Code 2024, is amended to read as follows:

Code 2024, is amended to read as follows:

on March ^15 5 of each year, each political subdivision shall file with the department 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 If“b”. a county or city fails to file all necessary information with the department of management by 4:00 p.m.

onIf Marcha 5,county taxesor leviedcity byfails theto countyfile orall citynecessary shallinformation bewith limitedthe todepartment theof priormanagement yearnsby budget4:00 amount.p.m.

on March 5, taxes levied by the county or city shall be limited to the prior year’s budget amount.

Section 24.2A, subsection 2, paragraph b, unnumbered paragraph 11, , Code 2024, is amended to read as ffollows: o l l o w s :

10 Not later than March ^20 15, the county auditor, using information compiled and calculated by the department of management under paragraph ""a",“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'sowner’s or taxpayer'staxpayer’s taxing district:

Section 24.2A, subsection 2, paragraph b, subparagraphs ((5) 5 ) and (6), Code 2024, are amended to read as ffollows: o l l o w s :

(5) AftAn 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 porccntagopercentage diffcroncGdifference 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 ssuch uamounts. ca m o u n t s .

(6) AftAn For the budget for the fiscal year beginning July 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 porecntagepercentage diffcroncedifference percent change in such amounts.

Section 24.2A, subsection 2, paragraph b.b, Code 2024, is amended by adding the following new subparagraph:

CodeSenate 2024,File is2442, amendedp. by adding the following new subparagraph:

Senate11 PileNEW 2442,SUBPARAGRAPH p..

11(10) NEWA SUBPARAGRAPH.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.

(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 i n f o r m ai n c l uon the s t a t e m e n t .

Section 24.2A, subsection 4, paragraph a.a, Code 2024, is amended to read as follows:

Code 2024, is amended to read as follows:

Each political subdivision shall set a time and place for a public hearing on the political subdivision'ssubdivision’s proposed property tax amount for the budget year and the political subdivision'ssubdivision’s information included in the statements under subsection 2.

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'ssubdivision’s budget, and other business of the political subdivision that is not related to the proposed property tax 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'ssubdivision’s budget.

Section 24.2A, subsection 4, paragraph b.b, Code 2024, is amended by adding the following new subparagraph:

CodeNEW 2024,SUBPARAGRAPH is. amended by adding the following new subparagraph:

NEW(4) SUBPARAGRAPH.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:

(4)(a) FailureNotice of athe newspaperpublic tohearing publishwas aprovided requiredto noticeeach underproperty thisowner paragraphand shalleach nottaxpayer bewithin consideredthe a failure of a political subdivision toin providestatements required notice under thissubsection 2, paragraph if“b”. all of the following conditions are m e t :

(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) The political subdivision can demonstrate to the county auditor that the political subdivision provided sufficient time Senate File 2442, p.

Section 24.2A, subsection 4, paragraph c.c, Code 2024, is amended to read as follows:

Code 2024, is amended to read as follows:

Notice of the hearing shall also be posted and clearly identified on the political subdivision'ssubdivision’s internet site for public viewing beginning on the date of the newspaper publication and shall be maintained on the political subdivision'ssubdivision’s internet site with all such prior year notices and copioocopies of the gtatcmontastatements mailed under aubocctionsubsection 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 nnotice. o t i c e .

Section 176A.8, subsection 6, Code 2024, is amended tto orread eas aafollows: s f o l l o w s :

Section 176A.10, subsection 1, unnumbered paragraph 11, , Code 2024, is amended to read as follows:

Section 257.19, subsection 2, Code 2024, is amended tto orread eas aafollows: sf o l l o w s :

Certification of a board'sboard’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 IrS-^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 Senate PileFile 2442, p.

13 support property tax or a combination of an instructional support property tax and an instructional support income ssurtax. u r t a x .

Section 309,93,309.93, unnumbered paragraph 1, Code 2024, iis samended ato mread eas nfollows: t oread a s f o l l o w s :

On or before April -1^15 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 sshall hinclude aan litemized lstatement iof: n c l u d e a ns t a t e m e n t o f :

NEW SUBSECTION.SUBSECTION .

9A,9A. 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 o r d i n a n c e .

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.

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 ttaxes. a x e s .

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:

(2) A verifiable public emergency or weather-related event which forced the cancellation of a public hearing as required uunder nsection d24.2A. s e c t i2 4 .

2 A .

(4) A failure of state software or a state process caused the board to miss the required date to certify the county'scounty’s budget.

Section 331,510,331.510, subsection 3, Code 2024, is aamended mto eread nas dtfollows: or e aa sf o l l o w s :

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'sassessor’s abstract transmitted to the department of revenue under section 441.45.

Section 384.1, subsection 3, paragraph c.c, Code 2024, is amended by adding the following new subparagraph:

CodeNEW 2024,SUBPARAGRAPH is. amended by adding the following new subparagraph:

NEW(4) SUBPARAGRAPH.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.

(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 t h t o t a l a s s value used t o c a l c u l a t e t a x e s 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 v a l u a t i o n .

41,41. Section 384.16, subsection 6 , Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:

Section 384.16, subsection 6, Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:

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:

(2) A verifiable public emergency or weather-related event which forced the cancellation of a public hearing as required under ssection e24.2A. c t i2 4 .

2 A .

(4) A failure of state software or a state process caused the council to miss the required date to certify the city'scity’s budget.

Section 403.22, subsection 5, Code 2024, is amended tto oreadread aas sfollows: f o l l o w s :

^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,Except Afor a municipality with a population under fifteen thousandthousand, Senatethe Filedivision 2442,of p.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 Senate File 2442, p.

Section 425.lA,425.1A, Code 2024, is amended by adding the following new subsection:

NEW SUBSECTION.SUBSECTION .

3,3. 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 countylist recorder,of countythe treasurer,names, countyaddresses, assessor,and citydates assessor,of orbirth otherof governmentalindividuals bodyallowed responsiblean forexemption maintainingunder thethis nsection aand mmaintained eby sthe ,county arecorder, dcounty dtreasurer, rcounty eassessor, sdcity aassessor, tor eother sgovernmental birthbody oand fiobtained nfor dpurposes iof vallowing ian dexemption uunder athis lsection sis aconfidential linformation land oshall wnot ebe ddisseminated anto exemptionany underperson thisunless sectionotherwise mayordered displayby sucha exemptioncourt onor individualreleased paperby recordsthe andlawful individualcustodian electronicof records,the includingrecords displaypursuant onto anstate internetor site.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.

NEW SUBSECTION.SUBSECTION .

2023 Iowa Acts, chapter 71, section 137, is amended tto orread eas aafollows: sf o l l o w s :

NEW SUBSECTION.SUBSECTION .

To annually prepare and file with the general assembly by DGCcmbGrDecember 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.

The section of this division of this Act enacting section 24.2A, subsection 2, paragraph ^^b",“b”, subparagraph (10).

The section of this division of this Act enacting section 24.2A, subsection 4, paragraph ^^b",“b”, subparagraph (4).

The section of this division of this Act amending section 24.2A, subsection 4, paragraph ^^c".“c”.

The section of this division of this Act amending section 5257.19, 7subsection .2.

1 9 , s u b 2 , c t i o n 7.

The section of this division of this Act enacting section 331.301, subsection 99A. A .

The section of this division of this Act amending section 3331.434, 1subsection .7.

4 3 4 , s u b s e c t i o n 7 .

The section of this division of this Act enacting section 384.1, subsection 3, paragraph ^c",“c”, subparagraph (4).

Section 24.2A, subsection 2, paragraph ^^b",“b”, subparagraph (10).

Section 24.2A, subsection 4, paragraph ^^b",“b”, subparagraph (4).

Section 24.2A, subsection 4, paragraph ^'c".“c”.

DDIVISION I V ICOMPENSATION SOF VELECTED OCOUNTY NOFFICIALS C O M P E N S A T I O N O F E L E C T E D C O U N T Y O F F I C I A L S Sec.

NEW PARAGRAPH,PARAGRAPH i..

Settingi. the compensation schedule of elected county officers, if the board has not established or has dissolved a county compensation board pursuant to section 3 1 .

9Setting 0the 5compensation .schedule of elected county officers, if the board has not established or has dissolved a county compensation board pursuant to section 331.905.

NEW PARAGRAPH,PARAGRAPH j..

j.

Section 331.321, subsection 1, paragraph 1,l, Code 2024, is amended to read as follows:

i.l.

Section 331.322, subsections 6 and 7, Code 2024, aare ramended eto aread mas efollows: nt oread a s f o l l o w s :

ncviowReview 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.

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.board .

Section 331.905, subsection 11, , unnumbered paragraph 1, Code 2024, is amended to read as follows:

ThoroThere 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 members of the county compensation board shall be sselected eas lfollows: e ca sef o l l o w s :

NEW SUBSECTION.SUBSECTION .

Pursuant to section 331.907, in setting the salary of the county sheriff, the board of supervisors shall set the sheriff'ssheriff’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.

Section 331.907, subsections 1 and 2, Code 2024, aare ramended eto aread mas efollows: nt oread a s f o l l o w s :

In setting the salary of the county sheriff, the county compensation board shall set the sheriff'ssheriff’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 Gloctiveelective elected county officers for the succeeding fiscal year.

The board of supervisors shall review the recommended compensation schedule for the elected county officers and determine the final compensation schedule which shall not cxcQcdexceed the compGngationcompensation ochoduloschedule rocommendGdrecommended by thGthe county compensation board.

In determining the final compensation—schedule—compensation schedule if the boaif-dboard of supervisors wishes—towishes reduGQto reduce the amount of the recommondedrecommended compensation schedule^schedule, the amount of oalarysalary increase proposed for each Gleotedelected county officer#officer, except as provided in subsection 3»3, shall be reduced an equal percentage.

21 schedule»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.

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.

For purposes of this subsection, '''^current“current compensation schedule^schedule” means the compensation schedule in effect when the board of supervisors considers the recommended compensation schedule.

DDIVISION IVI VCOUNTY IAND SVCITY IOPROPERTY NTAXES C O U NA N C I T P R O P ET A X E S Sec.

Section 331.423, subsection 1, paragraph b, subparagraphs ((2) 2 ) and (3), Code 2024, are amended to read as ffollows: o l l o w s :

((2) 2(a) )( 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 hundredths percent, but is less than one hundred ai*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'syear’s actual property tax dollars certified for levy under this subsection 1 divided by one hundred -twotwo one percent oof fthethe ttotal oassessed t a l a s s value used tto ocalculate csuch ataxes l c us u c t a x e s for the current fiscal year.

For the budget year beginning July 1, 2024, only, the current fiscal year'syear’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) bIf )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 Senate File 2442, p.

22 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'syear’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 yearnsyear’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, 22023. 0 2 3 .

((c) cIf )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'syear’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'syear’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) 3(a) )((i) a )( i ) In addition to the limitation under subparagraph (2), if the county'scounty’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 throethree two and seventy-five hundredths percent, but is less than one hundred asix i * four percent, of the total assessed value used to calculate taxes Senate File 2442, p.

23 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'syear’s actual property tax dollars certified for levy under this subsection 1 divided by one hundred -twotwo one 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'scounty’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'syear’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'scounty’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'syear’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'scounty’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 Senate File 2442, p.

24 services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023, and the current fiscal yearnsyear’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.

(c) (i) In addition to the limitation under subparagraph (2), if the county'scounty’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'syear’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'scounty’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'syear’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.

Section 331.423, subsection 2, paragraph b, subparagraphs (2) and (3), Code 2024, are amended to read as ffollows: o l l o w s :

((2) 2(a) )( 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 Senate File 2442, p.

25 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'syear’s actual property tax dollars certified for levy under this subsection 2 divided by one hundred -fewotwo 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'syear’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) bIf )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'syear’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 11, , 2024, only, the current fiscal year'syear’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, 22023. 0 2 3 , ( c ) 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 six percent of the total assessed value used to calculate taxes for rural county services for the current fiscal year, the adjusted rural Senate File 2442, p.

26(c) countyIf basicthe levytotal rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value thatused is equal to onecalculate thousandtaxes multipliedfor byrural thecounty quotientservices ofunder thethis currentparagraph fiscal year's actual property tax dollars certified for levythe underbudget thisyear subsectionis 2equal dividedto byor exceeds one hundred threesix percent of tthe htotal tassessed ovalue tused ato lcalculate ataxes sfor srural valuecounty eusedservices tfor othe ccurrent afiscal lyear, cthe uadjusted lrural aSenate ttaxesFile forh2442, thep. current fiscal year.

For26 thecounty budgetbasic yearlevy beginningrate, Julyas 1,previously 2024,adjusted only,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'syear’s actual property tax dollars certified for levy under this subsection 2 shalldivided alsoby includeone propertyhundred taxthree dollarpercent amountsof leviedthe fortotal ruralassessed countyvalue servicesused byto thecalculate countysuch undertaxes section 331.426, Code 2023, for the current fiscal yearyear. beginning July 1, 2023.

(For 3 )( a )( i ) In addition to the limitationbudget underyear subparagraphbeginning (2),July if1, the2024, county'sonly, actual levy rate imposed under this paragraph for the current fiscal yearyear’s isactual threeproperty dollarstax and ninety-five cents or less per thousand dollars ofcertified 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 s-i* 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 notalso exceedinclude 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 dollarsdollar certifiedamounts levied for levyrural undercounty thisservices subsection 2 divided by one hundred -two one percent of the totalcounty assessedunder valuesection used331.426, toCode calculate2023, taxes for ruralthe countyfiscal servicesyear forbeginning theJuly current1, fiscal2023. year.

(ii)(3) For(a) the(i) budgetIn yearaddition beginningto Julythe 1,limitation 2024,under only,subparagraph (2), if the county'scounty’s actual levy rate imposed under this subsectionparagraph for the current fiscal year shallis alsothree includedollars theand amountninety-five cents or less per thousand dollars of assessed value leviedand the total assessed value used to calculate taxes for rural county services byunder this paragraph for the countybudget underyear sectionexceeds 331.426,one Codehundred 2023,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 beginningshall Julynot 1,exceed 2023,a andrate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year'syear’s actual property tax dollars certified for levy under this subsection 2 shalldivided alsoby includeone amountshundred leviedtwo forone ruralpercent countyof servicesthe bytotal theassessed countyvalue underused sectionto 331.426,calculate Codetaxes 2023,for Senaterural Filecounty 2442,services p.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, Senate File 2442, p.

(b) (i) In addition to the limitation under subparagraph (2), if the county^scounty’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 ttotal oassessed tvalue a l a s s v a l used tto ocalculate ctaxes a l c u t a x e s 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 yearyear’s *^3 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'scounty’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 yearnsyear’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.

(c) (i) In addition to the limitation under subparagraph (2), if the county'scounty’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 Senate File 2442, p.

28 one thousand multiplied by the quotient of the current fiscal year'syear’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'scounty’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'syear’s actual property tax dollars certified for levy under tthis hsubsection i2 sshall salso uinclude bamounts slevied e2for srural h a l l a l s o i n c l u d e a m o u r u r a l v i e d f o r county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023.

Section 384.1, subsection 3, paragraph c, subparagraphs (2) and (3), Code 2024, are amended to read as ffollows: o l l o w s :

((2) 2(a) )( a ) If the total assessed value used to calculate taxes under this paragraph for the budget year exceeds one hundred throethree two and seventy-five hundredths percent, but is less than one hundred ai*six four percent, of the total assessed value used tto ocalculate ctaxes aunder lthis csubsection ut a x eunder t h i s s u b s e c ttheo n 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'syear’s actual property tax dollars certified for levy under this subsection divided by one hundred twetwo 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'syear’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) bIf )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 Senate File 2442, p.

29 tthe htotal tassessed o t a l a s s value used tto ocalculate ctaxes a l c utaxest 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'syear’s actual property tax dollars certified for levy under this subsection divided by one hundred two percent of the total aassessed s s e s value used tto ocalculate csuch ataxes lfor cthe ucurrent l a tt a x e s fthe c u r r e n t fiscal year.

For the budget year beginning July 1, 2024, only, the current fiscal year'syear’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) cIf )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 ccalculate ataxes l c u lt a x under tthis hsubsection ifor sthe scurrent ufiscal b s e c tthe c u r r e n t f i s c a l 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'syear’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'syear’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) 3(a) )((i) a )( i ) In addition to the limitation under subparagraph (2), if the city'scity’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 throethree two and seventy-five hundredths percent, but is less than one hundred ai*six four percent, of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the Senate File 2442, p.

30 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'syear’s actual property tax dollars certified for levy under this subsection divided by one hundred two percent of the ttotal oassessed tvalue a l a s svalues used tto ocalculate ctaxes a l c utaxest under this subsection for the current fiscal year.

(ii) For the budget year beginning July 1, 2024, only, the city'scity’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'syear’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^t“b”, subparagraphs (1), (2), and (3).

(b) (i) In addition to the limitation under subparagraph (2), if the city'scity’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'syear’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'scity’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'',“b”, subparagraphs (1), (2), and (3), and the current fiscal year'syear’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts Senate File 2442, p.

31 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'scity’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 ttotal oassessed tvalue a l a s svalues used to ccalculate a l c u taxes eunderunder this paragraph for the budget year is equal to or exceeds one hundred six percent of the total assessed value used to ccalculate ataxes lunder cthis usubsection ltaxeseunderfor tthe hcurrent ifiscal s s u b s efortthe c u r r e n t f i s c a l 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'syear’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'scity’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'syear’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",“b”, subparagraphs (1), (2), and (3).

DDIVISION IVII VPROPERTY ITAX SASSESSMENT VLIMITATIONS I I P R O P E T A A S S E S S L I M I T A T I O N S Sec.

Section 441.21, subsection 5, paragraph a.a, Code 2024, is amended to read as follows:

Codea. 2024, is amended to read as follows:

3, (1) For valuations established as of January 1, 1979, property valued by the department of revenue pursuant to chapters 428, 433-r433, and 437-/—and437, and 438 shall be considered as one class of property and shall be assessed as a percentage of its actual value.

For valuations established as of January 1, 1979, the percentage shall be the quotient of the dividend and divisor aas sdefined din ethis fsection. i inet h i s s e c t T h e d i v is h a lbe t h e total actual valuation established for 1978 by the department of revenue, plus ten percent of the amount so determined.

The divisordividend for property valued by the department of revenue pursuant to chapters 428# 4337- and 4377—and 438 shall be the total actual valuation established for 1978,1978 plusby the amountdepartment of valuerevenue, addedplus toten thepercent total actual value by the revaluation of the propertyamount byso thedetermined. department of revenue as of January 1, 1979.

ForThe valuationsdivisor establishedfor as of January 1, 1980, property valued by the department of revenue pursuant to chapters 420,428, 433—433, and 4377—and437, and 438 shall be assessedthe atvaluation aestablished percentagefor 1978, plus the amount of itsvalue added to the total actual value.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.

For valuations established as of January 1, 1980, the percentage shall be the quotient of the dividend and divisor as defined in tthis hsection. i s s e c t T h d i v i ds h a lbe t h t o t a l a c v a l u a t i o n established for 1979 by the department of revenue, plus eight percent of the amount so determined.

The divisordividend for property valued by the department of revenue pursuant to chapters 428# 4337- and 437# and 438 shall be the total actual valuation established for 1979,1979 plusby the amountdepartment of valuerevenue, addedplus toeight thepercent total actual value by the revaluation of the propertyamount byso thedetermined. department of revenue as of January 1, 1980.

ForThe valuationsdivisor establishedfor 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, 4337-433, and 437, and 430438 shall be assessedthe shallvaluation beestablished calculatedfor in1979, accordanceplus withthe amount of value added to the methodstotal providedactual herein,value exceptby thatthe anyrevaluation referencesof tothe tenproperty percentby inthe thisdepartment subsectionof shallrevenue beas eightof percent.January 1, 1980.

(2) For valuations established onas orof after January 1, 2013,1981, and each year thereafter, the percentage of actual value at which property valued by the department of revenue pursuant to chapterchapters 434428, shall433, beand assessed437, atand a438 portionshall ofbe itsassessed actualshall valuebe determinedcalculated in theaccordance samewith mannerthe atmethods whichprovided propertyherein, assessedexcept asthat commercialany propertyreferences isto assessedten underpercent paragraphin "'^b"forthis thesubsection sameshall assessmentbe year.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.

33 which property valued by the department of revenue pursuant to chapters 428 and 438 shall be assessed shall be ninety-eight ppercent. e r c e n t .

((4) 4For )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«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 p e r c e n t .

(6)(5) 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 p e r c e n t , (7) For valuations established on or after January 1, 2029,2027, 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 ninetyninety-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.

Section 441.21, subsections 9 and 10, Code 2024, aare ramended ato m e n dto read aas sfollows: f o l l o w s :

Not later than November 11, , 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, 433x433, and 437/437, and 430438 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 The“c”. county auditor shall proceed to determine the assessed values of agricultural property, residential property.

The county auditor shall proceed to determine the assessed values of agricultural property, residential property, Senate File 2442, p.

34 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 428/428, 433-r433, and 437/437, and 430438 by applying such percentages to the current actual value of such property, as reported to the county auditor by the assessor, and the aassessed svalues sso edetermined sshall vbe a l u e d e t e r ms h a l l the taxable vvalues aof l u e s o f such properties upon which the levy shall be made.

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 428/428, 433—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.

DDIVISION IVIII VTAXPAYER IRELIEF SVFUND I I I T A X P A R E L IF U N D Sec.

Section 8.54, subsection 5, paragraph b.b, Code 2024, is amended to read as follows:

Code 2024, i s a m e n t oread a s f o l l o w s :

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",“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 on the date that acctionsection 8.57E/—oubacction8.57E, 2/—paragraphsubsection ^^b"t—2, rcpoalcdparagraph July“b”, 1is ,repealed July 1, 2029.

Section 8.57E, subsection 2, paragraph b.b, Code 2024, is amended by striking the paragraph and inserting in lieu thereof the following:

Code 2024, is amended by striking the paragraph and inserting in lieu thereof the following:

35 b»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 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 i s l o w e r .

(2)(1) For purposesthe offiscal thisyear paragraph,beginning ^netJuly general1, fund2024, fundand offor each fiscal year thereafter, if the stateactual enactednet byrevenue for the general assemblyfund andof approvedthe bystate for the governorfiscal oryear otherwiseis providedless bythan lawthe net general fund appropriation for the fiscal year, minusthere reversionsis transferred from the taxpayer relief fund to the general fund of the state.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.

DDIVISION IIX VCORRECTIVE IPROVISION SI XO N Sec.

Section 15.491, subsection lA,1A, if enacted by 2024 Iowa Acts, Senate File 574, section 3, is amended to read as ffollows: o l l o w s :

lA.1A.

'^Agricultural“Agricultural land"land” means the same as defined in section i91.1 l9I.1. .

l______________________________ .______________________________ AMY SINCLAIR PAT GRASSLEY President of the Senate Speaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 2442, Ninetieth General Assembly.

AMY______________________________ SI^LAIRW. PAT GRASSL] Presid&nt of the Senate Speaker or the House is known as Senate File 2442, Ninetieth General Assembly.te and m m W .C H A R LS M I T H S O N Secretary of the Senate Ap rve<|\ilA,\l , 2 024 tA ^ \ I Klff'REYNOLDq G o v e r n o r

CHARLES SMITHSON Secretary of the Senate Approved _______________, 2024 ______________________________ KIM REYNOLDS Governor