Read the full stored bill text
House
File
2577
-
Introduced
HOUSE
FILE
2577
BY
GOLDING
A
BILL
FOR
An
Act
relating
to
property
taxes
and
local
government
funding
1
by
modifying
the
methodology
for
determining
actual
value
2
of
property,
certain
levy
rates,
bonding
procedures,
3
assessment
protests,
and
assessment
limitations
of
certain
4
classes
of
property,
and
including
retroactive
applicability
5
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
5441YH
(4)
91
ms/md
H.F.
2577
DIVISION
I
1
ACTUAL
VALUATION
LIMITATION
2
Section
1.
Section
441.21,
subsection
1,
paragraph
a,
Code
3
2026,
is
amended
to
read
as
follows:
4
a.
(1)
All
property
subject
to
taxation
shall
be
valued
5
at
its
actual
value
which
shall
be
entered
opposite
each
item,
6
and,
except
as
otherwise
provided
in
this
section
,
shall
be
7
assessed
at
one
hundred
percent
of
its
actual
value,
and
the
8
value
so
assessed
shall
be
taken
and
considered
as
the
assessed
9
value
and
taxable
value
of
the
property
upon
which
the
levy
10
shall
be
made.
11
(2)
For
assessment
years
beginning
on
or
after
January
12
1,
2027,
but
before
January
1,
2030,
and
notwithstanding
any
13
provision
of
law
to
the
contrary,
the
actual
value
of
each
14
individual
residential,
commercial,
or
industrial
property,
15
including
after
adjustments
to
actual
values
made
as
the
result
16
of
equalization,
shall
not
exceed
one
hundred
percent
of
the
17
actual
value
of
the
property
for
the
immediately
preceding
18
assessment
year
unless
the
property
was
not
assessed
in
19
the
immediately
preceding
assessment
year,
ownership
of
the
20
property
changes,
the
property’s
boundaries
change,
there
is
a
21
change
to
the
property’s
classification,
or
new
construction,
22
additions,
or
improvements
have
been
made
to
the
property
other
23
than
normal
and
necessary
maintenance
or
repairs,
not
amounting
24
to
structural
replacements
or
modification,
and
cost
of
the
25
construction,
additions,
or
improvements
exceeds
five
percent
26
of
the
property’s
actual
value.
27
(3)
For
assessment
years
beginning
on
or
after
January
1,
28
2030,
and
notwithstanding
any
provision
of
law
to
the
contrary,
29
the
actual
value
of
each
individual
residential,
commercial,
30
or
industrial
property,
including
after
adjustments
to
actual
31
values
made
as
the
result
of
equalization,
shall
not
exceed
32
the
product
of
the
annual
inflation
factor
multiplied
by
the
33
actual
value
of
the
property
for
the
immediately
preceding
34
assessment
year
unless
the
property
was
not
assessed
in
35
-1-
LSB
5441YH
(4)
91
ms/md
1/
25
H.F.
2577
the
immediately
preceding
assessment
year,
ownership
of
the
1
property
changes,
the
property’s
boundaries
change,
there
is
a
2
change
to
the
property’s
classification,
or
new
construction,
3
additions,
or
improvements
have
been
made
to
the
property
4
other
than
normal
and
necessary
maintenance
or
repairs,
not
5
amounting
to
structural
replacements
or
modification,
and
6
cost
of
the
construction,
additions,
or
improvements
exceeds
7
five
percent
of
the
property’s
actual
value.
For
purposes
8
of
this
subparagraph,
“annual
inflation
factor”
means
an
9
index,
expressed
as
a
percentage,
determined
by
the
department
10
of
management
based
upon
the
consumer
price
for
all
urban
11
consumers
for
the
midwest
region
for
the
twelve-month
period
12
ending
six
months
prior
to
January
1
of
the
assessment
year
13
for
which
the
factor
is
determined.
In
determining
the
annual
14
inflation
factor,
the
department
of
management
shall
use
the
15
annual
percent
change
in
the
United
States
department
of
labor,
16
bureau
of
labor
statistics,
consumer
price
index
for
all
urban
17
consumers
for
the
midwest
region,
all
items,
or
its
successor
18
index
in
the
applicable
twelve-month
period
and
shall
add
all
19
of
that
percent
change
to
one
hundred
percent.
The
annual
20
inflation
factor
shall
be
expressed
as
a
percentage
rounded
to
21
the
nearest
one-tenth
of
one
percent.
The
annual
inflation
22
factor
shall
not
be
less
than
one
hundred
percent
nor
greater
23
than
one
hundred
three
percent.
24
Sec.
2.
Section
441.21,
subsection
1,
paragraph
b,
25
subparagraph
(1),
Code
2026,
is
amended
to
read
as
follows:
26
(1)
The
Subject
to
the
limitation
under
paragraph
“a”
,
the
27
actual
value
of
all
property
subject
to
assessment
and
taxation
28
shall
be
the
fair
and
reasonable
market
value
of
such
property
29
except
as
otherwise
provided
in
this
section
.
“Market
value”
30
is
defined
as
the
fair
and
reasonable
exchange
in
the
year
in
31
which
the
property
is
listed
and
valued
between
a
willing
buyer
32
and
a
willing
seller,
neither
being
under
any
compulsion
to
buy
33
or
sell
and
each
being
familiar
with
all
the
facts
relating
34
to
the
particular
property.
Sale
prices
of
the
property
or
35
-2-
LSB
5441YH
(4)
91
ms/md
2/
25
H.F.
2577
comparable
property
in
normal
transactions
reflecting
market
1
value,
and
the
probable
availability
or
unavailability
of
2
persons
interested
in
purchasing
the
property,
shall
be
3
taken
into
consideration
in
arriving
at
its
market
value.
In
4
arriving
at
market
value,
sale
prices
of
property
in
abnormal
5
transactions
not
reflecting
market
value
shall
not
be
taken
6
into
account,
or
shall
be
adjusted
to
eliminate
the
effect
7
of
factors
which
distort
market
value,
including
but
not
8
limited
to
sales
to
immediate
family
of
the
seller,
foreclosure
9
or
other
forced
sales,
contract
sales,
discounted
purchase
10
transactions
or
purchase
of
adjoining
land
or
other
land
to
be
11
operated
as
a
unit.
12
Sec.
3.
Section
441.21,
subsection
1,
paragraph
g,
Code
13
2026,
is
amended
to
read
as
follows:
14
g.
Notwithstanding
any
other
provision
of
this
section
,
15
the
actual
value
of
any
property
shall
not
exceed
its
fair
16
and
reasonable
market
value,
subject
to
paragraph
“a”
,
except
17
agricultural
property
which
shall
be
valued
exclusively
as
18
provided
in
paragraph
“e”
and
paragraph
“a”
,
of
this
subsection
.
19
Sec.
4.
Section
441.21,
subsection
2,
Code
2026,
is
amended
20
to
read
as
follows:
21
2.
In
the
event
market
value
of
the
property
being
assessed
22
cannot
be
readily
established
in
the
foregoing
manner,
then
23
the
assessor
may
,
subject
to
the
limitation
under
subsection
24
1,
paragraph
“a”
,
determine
the
value
of
the
property
using
the
25
other
uniform
and
recognized
appraisal
methods
including
its
26
productive
and
earning
capacity,
if
any,
industrial
conditions,
27
its
cost,
physical
and
functional
depreciation
and
obsolescence
28
and
replacement
cost,
and
all
other
factors
which
would
assist
29
in
determining
the
fair
and
reasonable
market
value
of
the
30
property
but
the
actual
value
shall
not
be
determined
by
use
31
of
only
one
such
factor.
The
following
shall
not
be
taken
into
32
consideration:
Special
value
or
use
value
of
the
property
to
33
its
present
owner,
and
the
goodwill
or
value
of
a
business
34
which
uses
the
property
as
distinguished
from
the
value
of
35
-3-
LSB
5441YH
(4)
91
ms/md
3/
25
H.F.
2577
the
property
as
property.
In
addition,
for
assessment
years
1
beginning
on
or
after
January
1,
2018,
and
unless
otherwise
2
required
for
property
valued
by
the
department
of
revenue
3
pursuant
to
chapters
428
,
437
,
and
438
,
the
assessor
shall
not
4
take
into
consideration
and
shall
not
request
from
any
person
5
sales
or
receipts
data,
expense
data,
balance
sheets,
bank
6
account
information,
or
other
data
related
to
the
financial
7
condition
of
a
business
operating
in
whole
or
in
part
on
the
8
property
if
the
property
is
both
classified
as
commercial
or
9
industrial
property
and
owned
and
used
by
the
owner
of
the
10
business.
However,
in
assessing
property
that
is
rented
or
11
leased
to
low-income
individuals
and
families
as
authorized
by
12
section
42
of
the
Internal
Revenue
Code,
as
amended,
and
which
13
section
limits
the
amount
that
the
individual
or
family
pays
14
for
the
rental
or
lease
of
units
in
the
property,
the
assessor
15
shall,
unless
the
owner
elects
to
withdraw
the
property
from
16
the
assessment
procedures
for
section
42
property,
use
the
17
productive
and
earning
capacity
from
the
actual
rents
received
18
as
a
method
of
appraisal
and
shall
take
into
account
the
extent
19
to
which
that
use
and
limitation
reduces
the
market
value
of
20
the
property.
The
assessor
shall
not
consider
any
tax
credit
21
equity
or
other
subsidized
financing
as
income
provided
to
22
the
property
in
determining
the
assessed
value.
The
property
23
owner
shall
notify
the
assessor
when
property
is
withdrawn
24
from
section
42
eligibility
under
the
Internal
Revenue
Code
25
or
if
the
owner
elects
to
withdraw
the
property
from
the
26
assessment
procedures
for
section
42
property
under
this
27
subsection
.
The
property
shall
not
be
subject
to
section
42
28
assessment
procedures
for
the
assessment
year
for
which
section
29
42
eligibility
is
withdrawn
or
an
election
is
made.
This
30
notification
must
be
provided
to
the
assessor
no
later
than
31
March
1
of
the
assessment
year
or
the
owner
will
be
subject
to
a
32
penalty
of
five
hundred
dollars
for
that
assessment
year.
The
33
penalty
shall
be
collected
at
the
same
time
and
in
the
same
34
manner
as
regular
property
taxes.
An
election
to
withdraw
35
-4-
LSB
5441YH
(4)
91
ms/md
4/
25
H.F.
2577
from
the
assessment
procedures
for
section
42
property
is
1
irrevocable.
Property
that
is
withdrawn
from
the
assessment
2
procedures
for
section
42
property
shall
be
classified
and
3
assessed
as
residential
property
unless
the
property
otherwise
4
fails
to
meet
the
requirements
of
subsection
14
.
Upon
5
adoption
of
uniform
rules
by
the
department
of
revenue
or
6
succeeding
authority
covering
assessments
and
valuations
of
7
such
properties,
the
valuation
on
such
properties
shall
be
8
determined
in
accordance
with
such
rules
and
in
accordance
with
9
forms
and
guidelines
contained
in
the
real
property
appraisal
10
manual
prepared
by
the
department
as
updated
from
time
to
time
11
for
assessment
purposes
to
assure
uniformity,
but
such
rules,
12
forms,
and
guidelines
shall
not
be
inconsistent
with
or
change
13
the
foregoing
means
of
determining
the
actual,
market,
taxable,
14
and
assessed
values.
15
DIVISION
II
16
MODIFICATION
OF
ASSESSMENT
LIMITATIONS
17
Sec.
5.
Section
441.21,
subsection
4,
Code
2026,
is
amended
18
to
read
as
follows:
19
4.
For
valuations
established
as
of
January
1,
1979
2026
,
20
the
percentage
of
actual
value
at
which
agricultural
and
21
residential
property
shall
be
assessed
shall
be
the
quotient
of
22
the
dividend
and
divisor
as
defined
in
this
section
determined
23
under
this
subsection
.
24
a.
(1)
The
percentage
of
actual
value
at
which
agricultural
25
property
shall
be
assessed
shall
be
the
quotient
of
the
26
dividend
and
divisor
as
defined
in
this
paragraph.
The
27
dividend
for
each
class
of
property
shall
be
the
dividend
28
as
determined
for
each
class
of
agricultural
property
for
29
valuations
established
as
of
January
1,
1978
2025
,
adjusted
by
30
the
product
obtained
by
multiplying
the
percentage
determined
31
for
that
year
by
the
amount
of
any
additions
or
deletions
to
32
actual
value,
excluding
those
resulting
from
the
revaluation
33
of
existing
properties,
as
reported
by
the
assessors
on
the
34
abstracts
of
assessment
for
1978
2025
,
plus
six
three
percent
35
-5-
LSB
5441YH
(4)
91
ms/md
5/
25
H.F.
2577
of
the
amount
so
determined.
1
(2)
However,
if
the
difference
between
the
dividend
so
2
determined
for
either
class
of
property
and
the
dividend
for
3
that
class
of
property
for
valuations
established
as
of
January
4
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
5
the
percentage
determined
for
that
year
by
the
amount
of
6
any
additions
or
deletions
to
actual
value,
excluding
those
7
resulting
from
the
revaluation
of
existing
properties,
as
8
reported
by
the
assessors
on
the
abstracts
of
assessment
for
9
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
other
10
class
of
property
shall
be
the
dividend
as
determined
for
that
11
class
of
property
for
valuations
established
as
of
January
12
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
13
the
percentage
determined
for
that
year
by
the
amount
of
14
any
additions
or
deletions
to
actual
value,
excluding
those
15
resulting
from
the
revaluation
of
existing
properties,
as
16
reported
by
the
assessors
on
the
abstracts
of
assessment
for
17
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
18
equal
to
the
percentage
by
which
the
dividend
as
determined
19
for
the
other
class
of
property
for
valuations
established
20
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
21
multiplying
the
percentage
determined
for
that
year
by
the
22
amount
of
any
additions
or
deletions
to
actual
value,
excluding
23
those
resulting
from
the
revaluation
of
existing
properties,
as
24
reported
by
the
assessors
on
the
abstracts
of
assessment
for
25
1978,
is
increased
in
arriving
at
the
1979
dividend
for
the
26
other
class
of
property.
27
(3)
For
valuations
established
for
assessment
years
28
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
29
dividend
for
residential
property
under
this
subsection
shall
30
exclude
the
value
of
all
property
described
in
subsection
14
,
31
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
32
and
the
property
described
in
subsection
14
,
paragraph
“a”
,
33
subparagraph
(7),
that
contains
three
or
more
separate
dwelling
34
units.
35
-6-
LSB
5441YH
(4)
91
ms/md
6/
25
H.F.
2577
b.
(1)
The
divisor
for
each
class
of
property
shall
be
1
the
total
actual
value
of
all
such
agricultural
property
in
2
the
state
in
the
preceding
year,
as
reported
by
the
assessors
3
on
the
abstracts
of
assessment
submitted
for
1978
2025
,
plus
4
the
amount
of
value
added
to
said
total
actual
value
by
the
5
revaluation
of
existing
properties
in
1979
2026
as
equalized
6
by
the
director
of
revenue
pursuant
to
section
441.49
.
The
7
director
shall
utilize
information
reported
on
abstracts
of
8
assessment
submitted
pursuant
to
section
441.45
in
determining
9
such
percentage.
For
valuations
established
as
of
January
10
1,
2027,
and
each
assessment
year
thereafter,
the
percentage
11
of
actual
value
as
equalized
by
the
department
of
revenue
as
12
provided
in
section
441.49
at
which
agricultural
property
shall
13
be
assessed
shall
be
calculated
in
accordance
with
the
methods
14
provided
in
this
paragraph.
15
(2)
For
valuations
established
for
assessment
years
16
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
17
divisor
for
residential
property
under
this
subsection
shall
18
exclude
the
value
of
all
property
described
in
subsection
14
,
19
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
20
and
the
property
described
in
subsection
14
,
paragraph
“a”
,
21
subparagraph
(7),
that
contains
three
or
more
separate
dwelling
22
units.
23
c.
(1)
For
valuations
established
as
of
January
1,
1980,
24
and
each
assessment
year
thereafter
beginning
before
January
25
1,
2013,
the
percentage
of
actual
value
as
equalized
by
the
26
director
of
revenue
as
provided
in
section
441.49
at
which
27
agricultural
and
residential
property
shall
be
assessed
shall
28
be
calculated
in
accordance
with
the
methods
provided
in
29
this
subsection
,
including
the
limitation
of
increases
in
30
agricultural
and
residential
assessed
values
to
the
percentage
31
increase
of
the
other
class
of
property
if
the
other
class
32
increases
less
than
the
allowable
limit
adjusted
to
include
33
the
applicable
and
current
values
as
equalized
by
the
director
34
of
revenue,
except
that
any
references
to
six
percent
in
this
35
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subsection
shall
be
four
percent.
1
(2)
For
valuations
established
as
of
January
1,
2013,
and
2
each
assessment
year
thereafter,
the
percentage
of
actual
3
value
as
equalized
by
the
department
of
revenue
as
provided
in
4
section
441.49
at
which
agricultural
and
residential
property
5
shall
be
assessed
shall
be
calculated
in
accordance
with
the
6
methods
provided
in
this
subsection
,
including
the
limitation
7
of
increases
in
agricultural
and
residential
assessed
values
to
8
the
percentage
increase
of
the
other
class
of
property
if
the
9
other
class
increases
less
than
the
allowable
limit
adjusted
10
to
include
the
applicable
and
current
values
as
equalized
by
11
the
department
of
revenue,
except
that
any
references
to
six
12
percent
in
this
subsection
shall
be
three
percent.
13
b.
(1)
For
valuations
established
for
the
assessment
year
14
beginning
January
1,
2026,
the
percentage
of
actual
value
as
15
equalized
by
the
department
of
revenue
as
provided
in
section
16
441.49
at
which
residential
property
shall
be
assessed
shall
17
be
forty-four
and
five
thousand
three
hundred
and
forty-five
18
ten
thousandths
percent.
19
(2)
For
valuations
established
for
the
assessment
year
20
beginning
January
1,
2027,
the
percentage
of
actual
value
as
21
equalized
by
the
department
of
revenue
as
provided
in
section
22
441.49
at
which
residential
property
shall
be
assessed
shall
23
be
forty-seven
percent.
24
(3)
For
valuations
established
for
the
assessment
year
25
beginning
January
1,
2028,
and
each
assessment
year
thereafter,
26
the
percentage
of
actual
value
as
equalized
by
the
department
27
of
revenue
as
provided
in
section
441.49
at
which
residential
28
property
shall
be
assessed
shall
be
fifty
percent.
29
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
division
of
this
30
Act
applies
retroactively
to
January
1,
2026,
for
assessment
31
years
beginning
on
or
after
that
date.
32
DIVISION
III
33
PROPERTY
TAX
LEVY
RATES
34
Sec.
7.
Section
331.422,
unnumbered
paragraph
1,
Code
2026,
35
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is
amended
to
read
as
follows:
1
Subject
to
this
section
and
sections
331.423
through
331.425
2
331.424
or
as
otherwise
provided
by
state
law,
the
board
of
3
each
county
shall
certify
property
taxes
annually
at
its
April
4
session
to
be
levied
for
county
purposes
as
follows:
5
Sec.
8.
Section
331.434,
unnumbered
paragraph
1,
Code
2026,
6
is
amended
to
read
as
follows:
7
Annually,
the
board
of
each
county,
subject
to
section
8
331.403,
subsection
4
,
sections
331.423
through
331.425
9
331.424
,
the
applicable
portions
of
chapter
24
,
and
other
10
applicable
state
law,
shall
prepare
and
adopt
a
budget,
certify
11
taxes,
and
provide
appropriations
as
follows:
12
Sec.
9.
Section
331.435,
subsection
1,
Code
2026,
is
amended
13
to
read
as
follows:
14
1.
The
board
may
amend
the
adopted
county
budget,
subject
to
15
sections
331.423
through
331.425
331.424
and
other
applicable
16
state
law,
to
permit
increases
in
any
class
of
proposed
17
expenditures
contained
in
the
budget
summary
published
under
18
section
331.434,
subsection
3
.
19
Sec.
10.
Section
384.12,
subsection
4,
Code
2026,
is
amended
20
by
striking
the
subsection.
21
Sec.
11.
NEW
SECTION
.
444.25
Maximum
property
tax
levy
22
dollars.
23
1.
For
purposes
of
this
section,
unless
the
context
24
otherwise
requires:
25
a.
“Budget
year”
is
the
fiscal
year
beginning
during
the
26
calendar
year
in
which
a
budget
is
certified.
27
b.
“Governmental
entity”
means
any
unit
of
government
28
or
other
public
body
or
public
corporation,
including
any
29
intergovernmental
entity
or
special
purpose
district,
that
30
has
the
power
to
impose
or
certify
a
property
tax
levy.
31
“Governmental
entity”
does
not
include
a
school
district.
32
c.
“Property
tax
levy”
means
each
ad
valorem
property
tax
33
authorized
by
law
to
be
imposed
by
a
governmental
entity,
but
34
excluding
any
levy
the
revenue
from
which
is
specified
by
law
35
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for
debt
service
or
required
to
be
used
exclusively
for
the
1
repayment
of
bonds
or
other
indebtedness.
The
levy
under
2
section
384.1,
subsection
2,
on
tracts
of
land
and
improvements
3
thereon
used
and
assessed
for
agricultural
or
horticultural
4
purposes,
shall
be
considered
a
separate
property
tax
levy
5
under
this
section.
6
2.
a.
For
the
budget
year
beginning
July
1,
2027,
and
each
7
budget
year
thereafter,
and
notwithstanding
any
provision
of
8
law
to
the
contrary,
the
maximum
levy
rate
that
may
be
imposed
9
for
a
property
tax
levy
by
a
governmental
entity
shall
not
10
exceed
the
levy
rate
for
such
property
tax
levy
imposed
by
the
11
governmental
subdivision
for
the
budget
year
beginning
July
1,
12
2026,
unless
a
higher
levy
rate
is
approved
at
election
under
13
subsection
3.
14
b.
If
the
budget
year
includes
a
voter-approved
property
15
tax
levy
that
was
not
approved
for
imposition
in
the
budget
16
year
beginning
July
1,
2026,
the
maximum
property
tax
levy
rate
17
for
the
governmental
entity
under
paragraph
“a”
for
the
budget
18
year
shall
be
the
levy
rate
approved
at
election
or
the
levy
19
rate
necessary
to
levy
the
amount
of
property
taxes
approved
at
20
election,
as
applicable.
21
3.
a.
The
limitation
on
any
property
tax
levy
rate
under
22
subsection
2,
paragraph
“a”
,
may
be
increased
provided
the
23
question
has
been
submitted
at
the
election
under
section
39.1
24
and
received
sixty
percent
of
the
votes
cast
on
the
proposition
25
to
authorize
the
levy
rate
increase
for
the
proposed
budget
26
year.
27
b.
If
the
governmental
entity
is
located
in
an
area
that
28
is
the
subject
of
a
governor’s
proclamation
of
a
state
of
29
disaster
emergency
or
the
declaration
of
a
major
disaster
by
30
the
president
of
the
United
States,
the
limitation
on
any
31
property
tax
levy
rate
under
subsection
2,
paragraph
“a”
,
may
32
be
temporarily
increased
for
a
budget
year,
unless
approved
at
33
election
for
additional
years
under
paragraph
“a”
.
34
c.
If
the
governmental
entity
is
a
city
with
a
population
35
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of
five
thousand
or
less
according
to
the
most
recent
federal
1
decennial
census,
the
city
council
may
certify
levy
rates
in
2
excess
of
the
rate
limitation
under
subsection
2,
paragraph
“a”
,
3
without
an
election.
However,
if
at
any
time
within
twenty
4
days
following
certification
of
the
city’s
budget,
a
petition
5
is
filed
with
the
clerk
of
the
city
in
the
manner
provided
by
6
section
362.4,
asking
that
the
question
of
exceeding
the
levy
7
rate
limit
be
submitted
to
the
registered
voters
of
the
city,
8
the
council
shall
direct
the
county
commissioner
of
elections
9
to
call
a
special
election
upon
the
question
of
exceeding
the
10
levy
rate
limitation.
11
4.
If
a
governmental
entity
certifies
a
budget
that
violates
12
this
section,
the
department
of
management
shall
reduce
the
13
applicable
governmental
entity’s
property
tax
levies
so
that
14
the
governmental
entity
is
in
compliance
with
this
section.
15
Sec.
12.
REPEAL.
Sections
24.48
and
331.425,
Code
2026,
16
are
repealed.
17
DIVISION
IV
18
PROPERTY
ASSESSMENT
PROTESTS
19
Sec.
13.
Section
441.33,
subsection
1,
Code
2026,
is
amended
20
to
read
as
follows:
21
1.
The
board
of
review
shall
be
in
session
from
a
date
22
determined
by
the
board
that
is
on
or
after
May
1
but
not
23
later
than
May
7
through
the
period
of
time
necessary
to
24
act
on
all
protests
filed
under
section
441.37
but
not
later
25
than
May
31
June
15
each
year
and
for
an
additional
period
as
26
required
under
section
441.37
and
shall
hold
as
many
meetings
27
as
are
necessary
to
discharge
its
duties.
On
or
before
May
28
31
in
those
years
in
which
a
session
has
not
been
extended
29
as
required
under
section
441.37
,
the
board
shall
return
all
30
books,
records,
and
papers
to
the
assessor
except
undisposed
31
of
protests
and
records
pertaining
to
those
protests.
If
32
it
has
not
completed
its
work
by
May
31,
in
those
years
in
33
which
the
session
has
not
been
extended
under
section
441.37
,
34
the
director
of
revenue
may
authorize
the
board
of
review
35
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to
continue
in
session
for
a
period
necessary
to
complete
1
its
work,
but
the
director
of
revenue
shall
not
approve
a
2
continuance
extending
beyond
July
15.
On
or
before
May
31
3
or
on
the
final
day
of
any
extended
session
required
under
4
section
441.37
or
authorized
by
the
director
of
revenue,
the
5
board
of
review
shall
adjourn
until
the
date
determined
by
the
6
board
that
is
on
or
after
May
1
but
not
later
than
May
7
of
the
7
following
year.
It
shall
adopt
its
own
rules
of
procedure,
8
elect
its
own
chairperson
from
its
membership,
and
keep
minutes
9
of
its
meetings.
The
board
shall
appoint
a
clerk
who
may
be
10
a
member
of
the
board
or
any
other
qualified
person,
except
11
the
assessor
or
any
member
of
the
assessor’s
staff.
It
may
be
12
reconvened
by
the
director
of
revenue.
All
undisposed
protests
13
in
its
hands
on
July
15
shall
be
automatically
overruled
and
14
returned
to
the
assessor
together
with
its
other
records.
15
Sec.
14.
Section
441.37,
subsection
1,
paragraph
a,
16
subparagraph
(1),
unnumbered
paragraph
1,
Code
2026,
is
amended
17
to
read
as
follows:
18
Any
property
owner
or
aggrieved
taxpayer
who
is
dissatisfied
19
with
the
owner’s
or
taxpayer’s
assessment
may
file
a
protest
20
against
such
assessment
with
the
board
of
review
on
or
after
21
April
2,
to
and
including
April
May
30,
of
the
year
of
the
22
assessment.
In
any
county
which
has
been
declared
to
be
a
23
disaster
area
by
proper
federal
authorities
or
that
is
the
24
subject
of
a
state
of
disaster
emergency
proclamation
by
the
25
governor
after
March
1
and
prior
to
May
20
of
said
year
of
26
assessment,
the
board
of
review
shall
be
authorized
to
remain
27
in
session
until
July
15
and
the
time
for
filing
a
protest
28
shall
be
extended
to
and
include
the
period
from
May
June
1
29
to
June
5
20
of
such
year.
The
protest
shall
be
in
writing
30
on
forms
prescribed
by
the
director
of
revenue
and,
except
as
31
provided
in
subsection
3
,
signed
by
the
one
protesting
or
by
32
the
protester’s
duly
authorized
agent.
The
taxpayer
may
have
33
an
oral
hearing
on
the
protest
if
the
request
for
the
oral
34
hearing
is
made
in
writing
at
the
time
of
filing
the
protest.
35
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The
protest
must
be
confined
to
one
or
more
of
the
following
1
grounds:
2
Sec.
15.
Section
441.45,
subsection
2,
Code
2026,
is
amended
3
to
read
as
follows:
4
2.
If
a
board
of
review
continues
in
session
beyond
June
1
5
15
,
under
sections
441.33
and
441.37
,
the
abstract
of
the
real
6
property
shall
be
made
out
and
transmitted
to
the
department
of
7
revenue
within
fifteen
days
after
the
date
of
final
adjournment
8
by
the
board.
9
DIVISION
V
10
BONDING
11
Sec.
16.
Section
39.2,
subsection
4,
paragraph
d,
Code
2026,
12
is
amended
to
read
as
follows:
13
d.
For
any
political
subdivision
of
this
state,
if
the
14
special
election
is
in
whole
or
in
part
for
the
question
of
15
issuing
bonds
or
other
indebtedness,
the
first
Tuesday
after
16
the
first
Monday
in
November
in
an
even-numbered
year
.
17
Sec.
17.
Section
75.1,
subsection
1,
Code
2026,
is
amended
18
to
read
as
follows:
19
1.
When
a
proposition
to
authorize
an
issuance
of
bonds
by
20
a
county,
township,
school
corporation,
merged
area,
city,
or
21
by
any
political
subdivision
or
local
board
or
commission,
is
22
submitted
to
the
electors,
such
proposition
shall
not
be
deemed
23
carried
or
adopted,
anything
in
the
statutes
to
the
contrary
24
notwithstanding,
unless
the
vote
in
favor
of
such
authorization
25
is
equal
to
at
least
sixty
percent
of
the
total
vote
cast
for
26
and
against
said
proposition
at
said
election.
All
elections
27
on
such
proposition
shall
be
held
on
the
date
specified
in
28
section
39.2,
subsection
4
,
paragraph
“d”
.
29
Sec.
18.
Section
296.2,
Code
2026,
is
amended
to
read
as
30
follows:
31
296.2
Petition
for
election.
32
Before
indebtedness
can
be
contracted
in
excess
of
one
33
and
one-quarter
percent
of
the
assessed
value
of
the
taxable
34
property
,
a
petition
signed
by
eligible
electors
equal
35
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in
number
to
twenty-five
percent
of
those
voting
at
the
1
last
election
of
school
officials
shall
be
filed
with
the
2
president
of
the
board
of
directors,
asking
that
an
election
3
be
called,
stating
the
amount
of
bonds
proposed
to
be
issued
,
4
and
the
purpose
or
purposes
for
which
the
indebtedness
is
5
to
be
created
,
and
that
the
purpose
or
purposes
cannot
be
6
accomplished
within
the
limit
of
one
and
one-quarter
percent
7
of
the
valuation
.
The
petition
may
request
the
calling
of
an
8
election
on
one
or
more
propositions
separately
and
a
each
9
proposition
may
include
one
or
more
purposes.
10
Sec.
19.
Section
331.441,
subsection
2,
paragraph
b,
11
subparagraphs
(7),
(12),
and
(14),
Code
2026,
are
amended
to
12
read
as
follows:
13
(7)
Enlargement
and
improvement
of
a
county
hospital
14
acquired
and
operated
under
chapter
347A
,
subject
to
a
maximum
15
of
two
percent
of
the
assessed
value
of
the
taxable
property
in
16
the
county.
However,
notice
of
the
proposed
bond
issue
shall
17
be
published
once
each
week
for
two
consecutive
weeks
and
if,
18
within
twenty
days
following
the
date
of
the
first
publication,
19
a
petition
requesting
an
election
on
the
proposal
and
signed
20
by
eligible
electors
of
the
county
equal
in
number
to
at
least
21
twenty
percent
of
the
votes
cast
at
the
preceding
election
22
for
governor
is
filed
with
the
county
auditor,
the
proposal
23
is
subject
to
the
election
requirements
in
section
331.442,
24
subsections
2,
3,
and
4
,
for
general
county
purpose
bonds.
25
(12)
(a)
Funding
the
acquisition,
construction,
26
reconstruction,
improvement,
repair,
or
equipping
of
27
waterworks,
water
mains
and
extensions,
ponds,
reservoirs,
28
capacity,
wells,
dams,
pumping
installations,
real
and
personal
29
property,
or
other
facilities
available
or
used
for
the
30
storage,
transportation,
or
utilization
of
water.
31
(a)
(b)
The
county
board
of
supervisors
may
on
its
32
own
motion
or
upon
a
written
petition
of
a
water
supplier
33
established
under
chapter
357A
or
504
direct
the
county
34
auditor
to
establish
a
special
service
area
tax
district
for
35
-14-
LSB
5441YH
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91
ms/md
14/
25
H.F.
2577
the
purpose
of
issuing
general
obligation
bonds.
The
special
1
service
area
tax
district
shall
include
only
unincorporated
2
portions
of
the
county
and
shall
be
drawn
according
to
3
engineering
recommendations
provided
by
the
water
supplier
or
4
the
county
engineer
and,
in
addition,
shall
be
drawn
in
order
5
that
an
election
provided
for
in
subparagraph
division
(b)
6
section
331.443
can
be
administered.
The
county’s
debt
service
7
tax
levy
for
the
county
general
obligation
bonds
issued
for
8
the
purposes
set
out
in
this
subparagraph
shall
be
levied
only
9
against
taxable
property
within
the
county
which
is
included
10
within
the
boundaries
of
the
special
service
area
tax
district.
11
An
owner
of
property
not
included
within
the
boundaries
of
12
the
special
service
area
tax
district
may
petition
the
board
13
of
supervisors
to
be
included
in
the
special
service
area
tax
14
district
subsequent
to
its
establishment.
15
(b)
General
obligation
bonds
for
the
purposes
described
16
in
this
subparagraph
are
subject
to
an
election
held
in
the
17
manner
provided
in
section
331.442,
subsections
1
through
4
,
18
if
not
later
than
fifteen
days
following
the
action
by
the
19
county
board
of
supervisors,
eligible
electors
file
a
petition
20
with
the
county
commissioner
of
elections
asking
that
the
21
question
of
issuing
the
bonds
be
submitted
to
the
registered
22
voters
of
the
special
service
area
tax
district.
The
petition
23
must
be
signed
by
eligible
electors
equal
in
number
to
at
24
least
five
percent
of
the
registered
voters
residing
in
the
25
special
service
area
tax
district.
If
the
petition
is
duly
26
filed
within
the
fifteen
days,
the
board
of
supervisors
shall
27
either
adopt
a
resolution
declaring
that
the
proposal
to
issue
28
the
bonds
is
abandoned,
or
direct
the
county
commissioner
of
29
elections
to
call
a
special
election
within
a
special
service
30
area
tax
district
upon
the
question
of
issuing
the
bonds.
31
(14)
The
aiding
of
the
planning,
undertaking,
and
carrying
32
out
of
urban
renewal
projects
under
the
authority
of
chapter
33
403
and
for
the
purposes
set
out
in
section
403.12
.
However,
34
bonds
issued
for
this
purpose
are
subject
to
the
right
of
35
-15-
LSB
5441YH
(4)
91
ms/md
15/
25
H.F.
2577
petition
for
an
election
as
provided
in
section
331.442,
1
subsection
5
,
without
limitation
on
the
amount
of
the
bond
2
issue
or
the
population
of
the
county,
and
the
board
shall
3
include
notice
of
the
right
of
petition
in
the
notice
of
4
proposed
action
required
under
section
331.443,
subsection
2
.
5
Sec.
20.
Section
331.443,
subsections
2
and
3,
Code
2026,
6
are
amended
to
read
as
follows:
7
2.
Before
the
board
may
institute
proceedings
for
the
8
issuance
of
bonds
for
an
essential
county
purpose,
a
notice
9
of
the
proposed
action,
including
a
statement
of
the
amount
10
and
purposes
of
the
bonds,
an
estimate
of
the
annual
increase
11
in
property
taxes
as
the
result
of
the
bond
issuance
on
a
12
residential
property
with
an
actual
value
of
one
hundred
13
thousand
dollars,
a
statement
of
the
right
to
petition
for
14
an
election
under
subsection
3,
and
the
time
and
place
of
15
the
meeting
at
which
the
board
proposes
to
take
action
for
16
the
issuance
of
the
bonds,
shall
be
published
as
provided
in
17
section
331.305
.
At
the
meeting,
the
board
shall
receive
oral
18
or
written
objections
from
any
resident
or
property
owner
19
of
the
county.
After
all
objections
have
been
received
and
20
considered,
the
board,
at
that
meeting
or
a
date
to
which
it
is
21
adjourned,
may
take
additional
action
for
the
issuance
of
the
22
bonds
or
abandon
the
proposal
to
issue
the
bonds.
Any
resident
23
or
property
owner
of
the
county
may
appeal
the
decision
of
24
the
board
to
take
additional
action
to
the
district
court
of
25
the
county,
within
fifteen
days
after
the
additional
action
26
is
taken,
but
the
additional
action
of
the
board
is
final
and
27
conclusive
unless
the
court
finds
that
the
board
exceeded
its
28
authority.
The
provisions
of
this
subsection
with
respect
to
29
notice,
hearing,
and
appeal,
are
in
lieu
of
any
other
law.
30
3.
a.
Notwithstanding
subsection
2
,
a
board
may
institute
31
proceedings
for
the
issuance
of
bonds
for
an
essential
county
32
purpose
specified
in
section
331.441,
subsection
2
,
paragraph
33
“b”
,
subparagraph
(18)
or
(19),
in
an
amount
equal
to
or
greater
34
than
three
million
dollars
by
causing
a
notice
of
the
proposal
35
-16-
LSB
5441YH
(4)
91
ms/md
16/
25
H.F.
2577
to
issue
the
bonds,
including
a
statement
of
the
amount
1
and
purpose
of
the
bonds,
together
with
the
maximum
rate
of
2
interest
which
the
bonds
are
to
bear,
and
the
right
to
petition
3
for
an
election,
to
be
published
at
least
once
in
a
newspaper
4
of
general
circulation
within
the
county
at
least
ten
days
5
prior
to
the
meeting
at
which
it
is
proposed
to
take
action
for
6
the
issuance
of
the
bonds.
7
b.
a.
If
at
any
time
before
the
date
fixed
for
taking
8
action
for
the
issuance
of
the
bonds,
a
petition
is
filed
with
9
the
county
auditor,
signed
by
eligible
electors
of
the
county
10
equal
in
number
to
twenty
ten
percent
of
the
persons
in
the
11
county
who
voted
for
the
office
of
president
of
the
United
12
States
at
the
last
preceding
general
election
that
had
such
13
office
on
the
ballot,
asking
that
the
question
of
issuing
the
14
bonds
be
submitted
to
the
registered
voters
of
the
county,
the
15
board
shall
either
by
resolution
declare
the
proposal
to
issue
16
the
bonds
to
have
been
abandoned
or
shall
direct
the
county
17
commissioner
of
elections
to
call
a
special
election
upon
the
18
question
of
issuing
the
bonds.
Notice
of
the
election
and
its
19
conduct
shall
be
in
the
manner
provided
in
section
331.442
.
20
c.
b.
If
a
petition
is
not
filed,
or
if
a
petition
is
21
filed
and
the
proposition
of
issuing
the
bonds
is
approved
at
22
an
election,
the
board
may
proceed
with
the
authorization
and
23
issuance
of
the
bonds.
24
Sec.
21.
Section
384.24,
subsection
3,
paragraph
q,
Code
25
2026,
is
amended
to
read
as
follows:
26
q.
The
aiding
in
the
planning,
undertaking,
and
carrying
out
27
of
urban
renewal
projects
under
the
authority
of
chapter
403
,
28
and
all
of
the
purposes
set
out
in
section
403.12
.
However,
29
bonds
issued
for
this
purpose
are
subject
to
the
right
of
30
petition
for
an
election
as
provided
in
section
384.26
,
without
31
limitation
on
the
amount
of
the
bond
issue
or
the
size
of
32
the
city,
and
the
council
shall
include
notice
of
the
right
33
of
petition
in
the
notice
required
under
section
384.25,
34
subsection
2
.
35
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5441YH
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ms/md
17/
25
H.F.
2577
Sec.
22.
Section
384.25,
subsections
2
and
3,
Code
2026,
are
1
amended
to
read
as
follows:
2
2.
Before
the
council
may
institute
proceedings
for
the
3
issuance
of
bonds
for
an
essential
corporate
purpose,
a
notice
4
of
the
proposed
action,
including
a
statement
of
the
amount
5
and
purposes
of
the
bonds,
and
an
estimate
of
the
annual
6
increase
in
property
taxes
as
the
result
of
the
bond
issuance
7
on
a
residential
property
with
an
actual
value
of
one
hundred
8
thousand
dollars,
a
statement
of
the
right
to
petition
for
an
9
election
under
subsection
3,
and
the
time
and
place
of
the
10
meeting
at
which
the
council
proposes
to
take
action
for
the
11
issuance
of
the
bonds,
must
be
published
as
provided
in
section
12
362.3
.
At
the
meeting,
the
council
shall
receive
oral
or
13
written
objections
from
any
resident
or
property
owner
of
the
14
city.
After
all
objections
have
been
received
and
considered,
15
the
council
may,
at
that
meeting
or
any
adjournment
thereof,
16
take
additional
action
for
the
issuance
of
the
bonds
or
abandon
17
the
proposal
to
issue
the
bonds.
Any
resident
or
property
18
owner
of
the
city
may
appeal
the
decision
of
the
council
to
19
take
additional
action
to
the
district
court
of
the
county
in
20
which
any
part
of
the
city
is
located,
within
fifteen
days
21
after
the
additional
action
is
taken,
but
the
additional
action
22
of
the
council
is
final
and
conclusive
unless
the
court
finds
23
that
the
council
exceeded
its
authority.
The
provisions
of
24
this
subsection
with
respect
to
notice,
hearing,
and
appeal,
25
are
in
lieu
of
the
provisions
contained
in
chapter
73A
,
or
any
26
other
law.
27
3.
a.
Notwithstanding
subsection
2
,
a
council
may
institute
28
proceedings
for
the
issuance
of
bonds
for
an
essential
29
corporate
purpose
specified
in
section
384.24,
subsection
3
,
30
paragraph
“w”
or
“x”
,
in
an
amount
equal
to
or
greater
than
31
three
million
dollars
by
causing
a
notice
of
the
proposal
32
to
issue
the
bonds,
including
a
statement
of
the
amount
33
and
purpose
of
the
bonds,
together
with
the
maximum
rate
of
34
interest
which
the
bonds
are
to
bear,
and
the
right
to
petition
35
-18-
LSB
5441YH
(4)
91
ms/md
18/
25
H.F.
2577
for
an
election,
to
be
published
at
least
once
in
a
newspaper
1
of
general
circulation
within
the
city
at
least
ten
days
prior
2
to
the
meeting
at
which
it
is
proposed
to
take
action
for
the
3
issuance
of
the
bonds.
4
b.
a.
If
at
any
time
before
the
date
fixed
for
taking
5
action
for
the
issuance
of
the
bonds,
a
petition
is
filed
with
6
the
clerk
of
the
city
signed
by
eligible
electors
of
the
city
7
equal
in
number
to
twenty
ten
percent
of
the
persons
in
the
8
city
who
voted
for
the
office
of
president
of
the
United
States
9
at
the
last
preceding
general
election
that
had
such
office
on
10
the
ballot,
asking
that
the
question
of
issuing
the
bonds
be
11
submitted
to
the
registered
voters
of
the
city,
the
council
12
shall
either
by
resolution
declare
the
proposal
to
issue
13
the
bonds
to
have
been
abandoned
or
shall
direct
the
county
14
commissioner
of
elections
to
call
a
special
election
upon
the
15
question
of
issuing
the
bonds.
Notice
of
the
election
and
its
16
conduct
shall
be
in
the
manner
provided
in
section
384.26
.
17
c.
b.
If
a
petition
is
not
filed,
or
if
a
petition
is
filed
18
and
the
proposition
of
issuing
the
bonds
is
approved
at
an
19
election,
the
council
may
proceed
with
the
authorization
and
20
issuance
of
the
bonds.
21
Sec.
23.
Section
423F.4,
subsection
2,
paragraphs
a
and
b,
22
Code
2026,
are
amended
to
read
as
follows:
23
a.
Bonds
issued
on
or
after
July
1,
2019
2026
,
shall
not
be
24
sold
at
public
sale
as
provided
in
chapter
75
,
or
at
a
private
25
sale,
without
notice
and
hearing.
Notice
of
the
time
and
place
26
of
the
public
hearing
and
a
statement
of
the
right
to
petition
27
for
an
election
under
paragraph
“b”
shall
be
published
not
less
28
than
ten
nor
more
than
twenty
days
before
the
public
hearing
in
29
a
newspaper
which
is
a
newspaper
of
general
circulation
in
the
30
school
district.
31
b.
For
bonds
subject
to
the
requirements
of
paragraph
32
“a”
,
if
at
any
time
prior
to
the
fifteenth
day
following
the
33
hearing,
the
secretary
of
the
board
of
directors
receives
a
34
petition
containing
the
required
number
of
signatures
and
35
-19-
LSB
5441YH
(4)
91
ms/md
19/
25
H.F.
2577
asking
that
the
question
of
the
issuance
of
such
bonds
be
1
submitted
to
the
voters
of
the
school
district,
the
board
shall
2
either
rescind
its
adoption
of
the
resolution
or
direct
the
3
county
commissioner
of
elections
to
submit
the
question
to
the
4
registered
voters
of
the
school
district
at
an
election
held
5
on
the
date
specified
in
section
39.2,
subsection
4
,
paragraph
6
“d”
.
The
petition
must
be
signed
by
eligible
electors
equal
in
7
number
to
not
less
than
one
hundred
or
thirty
ten
percent
of
8
the
number
of
voters
at
the
last
preceding
election
of
school
9
officials
under
section
277.1
,
whichever
is
greater.
If
the
10
board
submits
the
question
at
an
election
and
a
majority
sixty
11
percent
of
those
voting
on
the
question
favors
issuance
of
the
12
bonds,
the
board
shall
be
authorized
to
issue
the
bonds.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
property
taxation
by
modifying
the
17
methodology
for
determining
actual
value
of
residential,
18
commercial,
and
industrial
property,
assessment
limitations
of
19
certain
classes
of
property,
and
certain
levy
rate
limitations.
20
DIVISION
I
——
ACTUAL
VALUE
LIMITATION.
Under
Code
section
21
441.21,
all
property
subject
to
taxation
shall
be
valued
at
its
22
actual
value
and,
except
as
otherwise
provided
by
law,
shall
be
23
assessed
at
100
percent
of
its
actual
value,
and
the
value
so
24
assessed
shall
be
taken
and
considered
as
the
assessed
value
25
and
taxable
value
of
the
property
upon
which
the
levy
shall
be
26
made.
Actual
value
is
generally
required
to
be
the
fair
and
27
reasonable
market
value.
“Market
value”
is
defined
as
the
fair
28
and
reasonable
exchange
in
the
year
in
which
the
property
is
29
listed
and
valued
between
a
willing
buyer
and
a
willing
seller,
30
neither
being
under
any
compulsion
to
buy
or
sell
and
each
31
being
familiar
with
all
the
facts
relating
to
the
particular
32
property,
but
excluding
certain
abnormal
sales.
33
The
bill
provides
that
for
assessment
years
beginning
on
34
or
after
January
1,
2027,
but
before
January
1,
2030,
the
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actual
value
of
each
individual
residential,
commercial,
and
1
industrial
property,
including
after
adjustments
to
actual
2
values
made
as
the
result
of
equalization,
shall
not
exceed
100
3
percent
of
the
actual
value
of
the
property
for
the
immediately
4
preceding
assessment
year
unless
the
property
was
not
assessed
5
in
the
immediately
preceding
assessment
year,
the
property
6
changed
ownership,
the
property’s
boundaries
change,
there
is
a
7
change
to
the
property’s
classification,
or
new
construction,
8
additions,
or
improvements
have
been
made
to
the
property
other
9
than
normal
and
necessary
maintenance
or
repairs,
not
amounting
10
to
structural
replacements
or
modification,
and
cost
of
the
11
construction,
additions,
or
improvements
exceeds
5
percent
of
12
the
property’s
actual
value.
13
The
bill
provides
that
for
assessment
years
beginning
on
or
14
after
January
1,
2030,
the
actual
value
of
each
such
individual
15
property,
including
after
adjustments
to
actual
values
made
16
as
the
result
of
equalization,
shall
not
exceed
the
product
17
of
the
annual
inflation
factor,
as
defined
in
the
bill,
and
18
the
actual
value
of
the
property
for
the
immediately
preceding
19
assessment
year
unless
the
property
was
not
assessed
in
the
20
immediately
preceding
assessment
year,
the
property
changed
21
ownership,
the
property’s
boundaries
changed,
there
is
a
22
change
to
the
property’s
classification,
or
new
construction,
23
additions,
or
improvements
have
been
made
to
the
property
24
other
than
normal
and
necessary
maintenance
or
repairs,
not
25
amounting
to
structural
replacements
or
modification,
and
the
26
cost
of
the
construction,
additions,
or
improvements
exceeds
27
5
percent
of
the
property’s
actual
value.
The
bill
defines
28
“annual
inflation
factor”
to
be
an
index,
expressed
as
a
29
percentage,
determined
based
upon
the
consumer
price
for
all
30
urban
consumers
for
the
midwest
region,
but
shall
not
be
less
31
than
100
percent
nor
greater
than
103
percent.
32
The
bill
also
makes
conforming
changes
to
other
provisions
33
of
law
relating
to
the
valuation
of
property.
34
DIVISION
II
——
MODIFICATION
OF
ASSESSMENT
LIMITATIONS.
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Code
section
441.21(4)
establishes
the
calculation
for
1
assessment
limitations
(rollback)
for
residential
property
and
2
agricultural
property.
The
bill
strikes
the
calculation
of
3
the
residential
property
assessment
limitation
for
assessment
4
years
beginning
on
or
after
January
1,
2026,
and
strikes
5
the
provision
within
the
agricultural
property
assessment
6
limitation
calculation
that
limits
growth
of
residential
or
7
agricultural
property
to
the
growth
in
the
other
classification
8
(ag-residential
tie).
The
bill
increases
assessment
9
limitations
for
residential
property
each
assessment
year
10
from
the
assessment
year
beginning
January
1,
2026,
until
the
11
assessment
limitation
reaches
50
percent
for
assessment
years
12
beginning
on
or
after
January
1,
2028.
By
operation
of
the
13
scheduled
increases
to
the
residential
property
assessment
14
limitation,
the
assessment
limitation
applicable
to
that
15
portion
of
commercial,
and
industrial
property
that
is
equal
to
16
or
less
than
$150,000
is
also
increased.
17
This
division
of
the
bill
applies
retroactively
to
18
assessment
years
beginning
on
or
after
January
1,
2026.
19
DIVISION
III
——
PROPERTY
TAX
LEVY
RATES.
Under
the
bill,
20
for
the
budget
year
beginning
July
1,
2027,
and
each
budget
21
year
thereafter,
and
notwithstanding
any
provision
of
law
to
22
the
contrary,
the
maximum
levy
rate
that
may
be
imposed
for
a
23
property
tax
levy
by
a
governmental
entity
generally
shall
not
24
exceed
the
levy
rate
for
such
property
tax
levy
imposed
by
the
25
governmental
subdivision
for
the
budget
year
beginning
July
26
1,
2026,
unless
a
higher
levy
rate
is
approved
at
election.
27
The
bill
includes
provisions
to
account
for
new
voter-approved
28
levies.
Additionally,
the
limitation
on
any
property
tax
levy
29
rate
under
the
bill
may
be
increased
provided
the
question
has
30
been
submitted
at
the
general
election
and
received
60
percent
31
of
the
votes
cast
on
the
proposition
to
authorize
the
levy
rate
32
increase
for
the
proposed
budget
year.
33
Under
the
bill,
if
the
governmental
entity
is
located
in
34
an
area
that
is
the
subject
of
a
governor’s
proclamation
of
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a
state
of
disaster
emergency
or
the
declaration
of
a
major
1
disaster
by
the
president
of
the
United
States,
the
limitation
2
on
any
property
tax
levy
rate
may
be
temporarily
increased
3
for
a
budget
year,
unless
approved
at
election
for
additional
4
years.
5
Under
the
bill,
if
the
governmental
entity
is
a
city
with
a
6
population
of
5,000
or
less,
the
city
council
may
certify
levy
7
rates
in
excess
of
the
rate
limitation
without
an
election.
8
However,
if
at
any
time
within
20
days
following
certification
9
of
the
city’s
budget,
a
petition
is
filed
with
the
clerk
of
the
10
city
asking
that
the
question
of
exceeding
the
levy
rate
limit
11
be
submitted
to
the
registered
voters
of
the
city,
the
council
12
shall
direct
the
county
commissioner
of
elections
to
call
a
13
special
election
upon
the
question
of
exceeding
the
levy
rate
14
limitation.
15
DIVISION
IV
——
PROPERTY
ASSESSMENT
PROTESTS.
Code
section
16
441.37
establishes
the
period
of
time
for
filing
protest
of
17
a
property
assessment
with
the
local
board
of
review.
The
18
bill
amends
the
period
of
time
for
filing
protests
of
property
19
assessment
from
ending
on
April
30
to
ending
on
May
30.
The
20
bill
also
makes
corresponding
changes
to
other
deadlines
21
following
that
change
to
the
protest
filing
period.
22
DIVISION
V
——
BONDING.
The
bill
modifies
the
procedures
and
23
requirements
for
the
issuance
of
certain
bonds
and
indebtedness
24
by
various
political
subdivisions.
25
Counties
and
cities
may
generally
contract
indebtedness
26
and
approve
the
issuance
of
general
obligation
bonds
to
27
carry
out
an
essential
county
purpose
or
essential
corporate
28
purpose
without
voter
approval,
while
the
issuance
of
general
29
obligation
bonds
to
carry
out
a
general
county
purpose
or
30
general
corporate
purpose
generally
requires
voter
approval
31
by
a
60
percent
threshold.
Current
law
also
establishes
32
circumstances
under
which
the
county
or
city
may
pursue
the
33
issuance
of
general
obligation
bonds
for
a
general
county
34
purpose
or
general
corporate
purpose
without
voter
approval,
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subject
to
the
filing
of
a
qualifying
petition
by
eligible
1
electors
requesting
an
election.
The
bill
provides
that
all
2
bond
issuances
for
essential
county
purposes
or
essential
3
corporate
purposes
are
subject
to
an
election
if
a
petition
is
4
filed
that
is
signed
by
eligible
electors
of
the
applicable
5
jurisdiction
equal
in
number
to
10
percent
of
the
persons
in
6
the
jurisdiction
who
voted
for
the
office
of
president
of
the
7
United
States
at
the
last
preceding
general
election.
8
The
bill
makes
corresponding
changes
to
other
provisions
9
of
law
governing
the
issuance
of
bonds
and,
by
operation
of
10
law,
the
changes
to
county
and
city
provisions
governing
the
11
issuance
of
bonds
apply
to
the
issuances
of
certain
other
bonds
12
or
indebtedness
by
or
on
behalf
of
certain
other
political
13
subdivisions.
14
Code
section
296.2
provides
that
before
indebtedness
can
be
15
contracted
by
a
school
district
in
excess
of
1.25
percent
of
16
the
assessed
value
of
the
taxable
property,
a
petition
shall
be
17
filed
with
the
president
of
the
board
of
directors,
asking
that
18
an
election
be
called.
The
bill
strikes
that
portion
of
the
19
section
limiting
the
provision
to
the
issuance
of
indebtedness
20
in
excess
of
1.25
percent
of
the
assessed
value
of
the
taxable
21
property.
22
Code
section
423F.4
governs
the
ability
of
school
districts
23
to
issue
bonds
payable
from
moneys
from
the
secure
an
advanced
24
vision
for
education
fund.
Under
current
law,
such
bonds
may
25
be
issued
without
approval
at
election,
unless
a
qualifying
26
petition
requesting
an
election
is
received.
The
bill
makes
27
all
such
bond
issuances
subject
to
60
percent
voter
approval
28
on
or
after
July
1,
2026,
and
changes
the
number
of
voters
29
required
for
a
qualifying
petition.
30
The
bill
amends
Code
section
75.1,
which
governs
elections
31
held
for
the
issuance
of
bonds
by
requiring
60
percent
32
voter
approval,
to
apply
to
merged
areas
and
other
political
33
subdivisions.
34
Code
section
39.2(4)(d)
provides
that,
for
any
political
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subdivision,
if
a
special
election
is
in
whole
or
in
part
1
for
the
question
of
issuing
bonds
or
other
indebtedness,
the
2
election
shall
be
held
on
the
first
Tuesday
after
the
first
3
Monday
in
November.
The
bill
changes
that
provision
to
only
4
apply
to
such
date
in
November
in
an
even-numbered
year.
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