Work Session_State Legislation/Property Tax Reform - Impact on CityCity of Dubuque
City Council Meeting
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Description
MVM Memo
Copyrighted
July 17, 2023
Work Session - Top # 01.
5:30 PM - State Legislation/Property Tax Reform - Impact on City
Revenue
Chief Financial Officer Jennifer Larson will make a presentation on
recent state legislation and property tax reform's impact on city revenue.
Updated Presentation_Uploaded 7.17.23
House File 718 Presentation
Type
City Manager Memo
Supporting Documentation
Supporting Documentation
THE C
DUjIBQTE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Work Session - Property Tax Legislation - House File 718
DATE: July 11, 2023
Dubuque
WAWca 914
ii
2007-2012.2013
2017*2019
Chief Financial Officer Jennifer Larson is sharing information for the July 17, 2023, 5:30
p.m. Work Session on Property Tax Legislation - House File 718.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Teri Goodmann, Director of Strategic Partnerships
House File 718
New Property Tax Law
. I'm IOrw
Levy consolidation Adjusted city
general fund levy
Military service
exemption
expansion
Single date
annually for bond
elections
Property tax
abatement
agreements and
limits
Bond financing
and reporting
requirements
ummary
r �
Levy limitation New homesteads _ 's
based on property
tax valuation exemption age
growth tiers 65+
Required Changesto
statement mailed budget timelines, _
to property forms, hearings &
owners processes! r 1
County Auditor
Regional transit reports -
funding revaluation/other 4.,,., n�
additions
IA
Levy
Consolidation
Adjusted City General Fund
Levy (ACGL)
What Levies are Combined?
• 384.12
(1)
Instrumental/Vocal Music
• 384.12
(9) Aid to a Transit Company
Groups
• 384.12
(1 1) Rent, Insurance, Maintenance of Civic Center
• 384.12
(2)
Memorial Buildings
• 384.12
(12) Operation &Maintenance of City -owned
• 384.12
(3)
Symphony Orchestra
Civic Center
• 384.12
(4)
Cultural & Scientific Facilities
. 384.12
(13) Planning a Sanitary Disposal Project
• 384.12
(5)
County Bridge
• 384.12
(15) Levee Improvement Fund in a Special
p p
• 384.12
(6)
Mississippi or Missouri River
Charter City
Bridge
Construction
• 384.12
(16) Maintain Institution Received by Gift/Devise
• 384.12
(7)
Bridge Purchase
• 384.12
(18) City Emergency Medical District
• 384.12
(8)
Contract for Use of Bridge
• 384.12
(20) Support Public Library
7/17/2023 House File 718 - New Property Tax Law
Largest Cities - Combined Levies Used
• Waterloo: Cultural &Scientific, Support Public Library
• Council Bluffs: Owned Civic Center
• Davenport: Support Public Library
• Cedar Rapids: Instrumental/Music Groups, Memorial Building
• Iowa City: Support Public Library
• Sioux City: Non -Owned Civic Center, Owned Civic Center,
Instrumental/Music Groups, Symphony Orchestra
07/17/2023 House File 718 - New Property Tax Law
Levies Not Included in Adjusted City
General Fund Levy Limitation
• Debt Service • Tort and Self -Insurance
• Pensions • Capital Improvement Reserve Fund
• Employee Benefits • Support for Local Emergency Management
• Operations and Maintenance of Commission
Municipal Transit • Emergency Services District
• Aviation Authority Levy to Exceed a Maximum Amount Set in
Code - Newly -Defined Parameters
7/17/2023 House File 718 - New Property Tax Law
Important Timing Notes
0
Fiscal Year 2024:
Baseline of Adjusted City
General Fund Levy
Fiscal Year 2025-2028: �
Levy Limit Calculation owl
Limited to This Period
Fiscal Year 2025: First
Annual Adjusted City
General Fund Levy
Fiscal Year 2029:
Adjusted City General
Fund Levy Limited to
$8.10
07/17/2023 House File 718 - New Property Tax Law
Calculating the New Adjusted City General
Fund Levy
1. Find City's
non TIF
taxable
value including gas &
electric and
excluding
ag land
and ag
building for Fiscal Year
2024
2. Find City's
non TIF
taxable
value including gas &
electric and
excluding
ag land
and ag
building for Fiscal Year
2025
2a. Calculate growth rate by taking difference between step #2 and
step #1 and dividing by step #1
3. Calculate baseline general fund levy - combine all levy rates
being merged in addition to existing general fund levy
07/17/2023 House File 718 - New Property Tax Lave
Calculating the New Adjusted City General
Fund Levy (continued)
• Provides a mechanism for levy rate to be reduced if non TIF taxable
growth triggers are met or exceeded
• Goal is to bring all levies back under or to the $8.10 max rate over time
• Reduces levy by constraining growth by 2% or 3% each year,
depending on the trigger hit
• Non TIF taxable growth under 3%, no reduction
• Non TIF taxable growth over 3% but less than 6%, 2% reduction factor applied
• Non TIF taxable growth over 6%, 3% reduction factor is applied
07/17/2023 House File 718 - New Property Tax Law
Calculating the New Adjusted City General
Fund Levy (continued)
• (Current Year CGFL requested dollars/(Current Year non TIF
taxable * reduction percentage))*1 000 = Budget Year CGFL Rate
• Budget Year CGFL * (Budget Year non TIF taxable/1000) = Budget
Year CGFL revenue
07/17/2023 House File 718 - New Property Tax Law 10
City of Dubuque Calcula
tion
2016 $2,255,562,993
0.24%
$8.10
$18,270,060
$8.10
$18,270,060
$0
2017 $2,358,056,508
0.57%
$8.10
$19,100,258
$8.10
$19,100,258
$0
2018 $2,371,609,335
5.37%
$8.10
$19,210,036
$7.94
$18,830,578
-$379,458
2019 $2,499,017,299
5.37%
$8.10
$20,242,040
$7.78
$19,442,354
-$799,686I
2020 $2,542,043,245
2021 $2,579,355,511
2022 $2,646,230,849
2023 $2,695,861,021
2024
07/17/203
$2,684,506,784
1.72%
$8.10
$20,590,550
1.47%
$8.10
$20,892,780
2.59%
$8.10
$21,434,470
1.88%
$8.10
$21,836,474
0.421 % M $8.10 I $21,744,505
House File 718 - New Property Tax Law
$8.10 $20,590,550
$8.10 $20,892,780
$8.10 $21,434,470
$8.10 $21,836,474
$8.10 $21,744,505
$0
$0 I
$0
$0 I
$0
Homestead
Property Tax
Credit &
Exemption
Property Owners 65 and Older
M,
New homestead
exemption for
property owners
aged 65+
Fiscal Year
2026+: $6,500
additional
exemption
In addition to
current
homestead credit
Current
homestead credit
will continue to
be state funded
Fiscal Year 2025:
$3,250 additional
exemption
65+ homestead
exemption no
state
reimbursement
65+ Homestead Exemption Application
Property
Tax Homestead Tax Credit and Exemption
laws Cade dhapter425 and Iowa Administrative Code rule 701-110.1
This application must he filed or postmarked to your city or county assessor on or before July 1 of We
year in which the credit or exemption is first claimed. Upon tiling and allowance of the claim, the claim Is
allowed on that homestead for successive years without further filing as long as the person qualifles for
the homestead credl¢ or exemption. A claim filed after July 1 of the year for which the person is claiming
the creditor e�mption shall be considered a claim fled for the following year. Contact information for
all assessors can be found al the Iowa State Association of Assessors webate: x-a-assessors.org
Prim property Imormatill
Parcel number: Owner
Owner Brrlhdate•: _1_!_ •Beginning with assessment year 2023, claimants aged 65 years or
alder may claim a homestead exemption In addition to the homestead credit.
Property location address:
City: State
Property owner mailing address:
ZIP:
City: State ZIP:
County: Number of acres:
Phone. Email:
Type of ownership (check one): deed: J contract: L inheritance: Q other. rj
Evidence of ownership on file in Ixmklpage or Instrument number:
I began to occupy this homestead on this date: and will a Iry the
dwelling house. in good faith, an July 1 and far at least six months during that calendar year, or I am
confined in a nursing home, extended -care facility, or hospital and the homestead Is maintained and
not leased or rented. or I am on active duty in the military.
I declare residency in Iowa for purposes ❑f income laxati❑n and that no other application for homestead
credit or exemption has been filed on other property -
Previous address:
City: _. Stale: ZIP:
Do you still own she previous address?
Yes L No.[]. If Yes, is the property for sale f] or rent ❑4
Was this property part of a distribution made pursuant to Iowa Code chapter 598 (Dissolution of
Marriage)?
Homestead Tax Credit and Exemption, page 2
certify that a smoke detector or smoke detectors meeting the requirements of Iowa Cade section
100.18 and Iowa Administrative Code chapter 661-210.
has been installed. L er will he installed within 30 days of filing this application: 711
This homestead contains a fuel -fired heater or appliance, a fireplace, or an attached garage:
Yes ❑ No fS
it Yes, I certify [hat a carbon monoxide alarm meeting the requirements of Iowa Cade section 100.18:
has been installed: Ell w will be installed within 30 days of filing [his application: ❑I
was 65 years old or older on or before January 1 of the year of [his application and I am claiming the
homestead exemption.
Yes _1 No Ll
I, the undersigned, declare under penalties of perjury or false cerllflcale, that I have examined this
application, and, to the best of my knowledge and bellef, it Is true, correct, and complete.
Slgnature: Date
Written notification must he given to the assessor upon conveyance of this properly or Its
discontinued use as your homestead
ASSESSOR USE ONLY
Assessor or authorized representative:
Parcel number -
recommend that the application fcr credk be: Allowed: ❑ Disallowed: ❑
If the claimant Is claiming [he homestead exemption, I recommend that the application for exemption be
Allowed: ❑ Disallowed: ❑
It the assessor recommends disallowance, provide reasons for the recommendation below:
• Applications were
due 7/1 /2023 for
Fiscal Year 2025
• If exemption is
granted, exemption
allowed for future
years without future
filing as long as
claimant continues
to qualify
07/17/2023 House File 718 - New Property Tax Law
18.9% of people in Dubuque are 65 and over
Estimated 5,638 new exemptions for 65+
Average assessed value of residential home
$159,503
• Fully implemented exemption would be $64.36
for City share of property taxes in FY 26
Fully implemented exemption would be $205.08
for all taxing bodies in FY 26
$345,484 estimated cost to City of Dubuque in
FY26
Military
Property Tax
Credit &
Exemption
Increased Exemption
Military Property Tax Credit & Exemption
p Fiscal Year 2024 and Prior a $1,852 credit funded by the State of Iowa
Fiscal Year 2025 increased to $4,000 and changes to exemption not funded by
State of Iowa
AA 2,011 households receive Military Service Property Tax Credit
A 1 $79,656 estimated cost to City of Dubuque in FY 25
7/17/2023 House File 718 - New Property Tax Lave
Property Tax
Abatement
Agreements
and Limits
Consult Bond Counsel
M,
ig Iowa Code Chapter 404 Urban
i
Revitalization Areas
Requires minimum assessment
agreements for commercial properties
Applies to revitalization areas created
0 in Fiscal Year 2025 and after
� Applied to first -year exemption
applications in existing revitalization
areas filed July 1, 2024 and after
Prohibits property tax abatement for school
of revitalization areas for residential projects
Beginning
and after
district portion
with revitalization areas created Fiscal Year 2025
gRg First -year exemption applications in existing revitalization
areas filed July 1, 2024 and after
Includes 7,266 properties and encompasses T,
acres
Application for improvements in 2023 is due by
2/1/24
Residential: 10% increase in assessed value, 10 years
of tax exemption on 100% of increased valuation
Commercial: 15% increase in assessed value, 3 years
of tax exemption on 100% of increased valuation
Dubuque
Urban
Revitalization
Exemptions
07/17/2023
A
145 Residential
exemptions
Properties with
42 Multi -Residential Properties with
exemptions
Residential Total
Savings: $87,843
Current Yearly
Multi -Residential Total Current Yearly
0 Savings: $69,442
House File 718 - New Property Tax Law
Transit
Funding
City of Des Moines
Transit
Funding -Des
Moines Area
Regional
Transit
Authority
• Allows City of Des Moines to go up to
7.5% franchise fees, with any portion
above 5% required to be dedicated to
Des Moines Area Regional Transit
Authority (DART)
07/17/2023 House File 718 - New Property Tax Law 24
County
Auditor
Valuation
Reports
Fiscal Year 2026
Beginning Fiscal year 2026
9
County Auditor valuation reports
Aeports must distinguish between
revaluation or other types of
addition to the value within the
abstract
Local
Government
Budgets
Taxpayer Statements
Local Government Budgets
and Taxpayer Statements
March 15: Cities must file a report with Iowa
Department of Management containing
information specified by new law to be
contained in mailings
• March 20: County Auditor must send each
property owner or taxpayer with the county by
regular mail an individual statement with the
specified information broken out by political
subdivision comprising the taxpayer's district
07/17/2023 House File 718 - New Property Tax Law 28
Taxpayer Statements
Must include:
1. Total Current Year Tax Rate and Dollars
2. Combined effective property tax rate for the district calculated using the sum of the current
fiscal year's actual property tax certified for levy of all of district's levies
3. Proposed Budget Year Tax Rate and Dollars
4. If the property tax dollars specified under (3) exceed the current fiscal year's actual
property tax dollars certified for levy specified in (1), a detailed statement of the major
reasons for the increase, including the specific purposes or programs for which the district
is proposing an increase;
07/17/2023 House File 718 - New Property Tax Law 29
Taxpayer Statements (continued)
5. An example comparing the amount of property taxes on a residential property with an actual value
Of $100,000 in the current fiscal year and such amount on the residential property using the
proposed property tax dollars for the budget year, including the percentage difference in such
amounts;
6. An example comparing the amount of property taxes on a commercial property with an actual
value of $100,000 in the current fiscal year and such amount on the commercial property using the
proposed property tax dollars for the budget year, including the percentage difference in such
amounts;
7. The district's percentage of total property taxes certified for levy in the owner's or taxpayer's taxing
district in the current fiscal year among all taxing authorities;
8. The date, time, and location of the district's public hearing on the information contained in the
statements.
9. Information on how to access the political subdivision's internet site, the political subdivision's
statements under this section, and other budget documents for prior fiscal years.
07/17/2023 House File 718 - New Property Tax Law
Public Hearing
Public hearing on proposed property tax
amounts for the budget year and new taxpayer
statements
• In addition to public hearing to adopt the
budget
• Must be separate from any other meeting of
City Council, including any other meeting or
hearing related to the budget
City Council can decrease, but not increase, the
proposed property tax amount to be included
in budget
07/17/2023 House File 718 - New Property Tax Law 31
Budget Certification Deadline:
April 30th instead of March 31 st
07/17/2023 House File 718 - New Property Tax Law
Bond
Elections
Single Date
Bond Elections
• Effective July 1, 2023 and after
• Elections on the question of issuing
bonds
• First Tuesday after the first Monday in
November
07/17/2023 House File 718 - New Property Tax Law 34
Bond
Financing
Increase in Limits
Bond Financing
• Effective July 1, 2024
• 30% increase to limits for general corporate purpose
referendum thresholds
• Adjusted by CPI factor for every January beginning 1/1/25
• Estimate of annual increase in property taxes as result of bond
issuance of a residential property with value of $100,000 be
added to notice of proposed action
• Department of Management to issue report on bond issuance to
General Assembly each December 1
07/17/2023 House File 718 - New Property Tax Law
Bond
Financing
Impact -
Dubuque
• Increases General Obligation
Corporate threshold from $700,000 to
$910,000
07/17/2023 House File 718 - New Property Tax Law 37
Annual
Finance
Report
Requirement Changes
Annual Financial Report Requirements
1W Effective December 1, 2025
List of bonds, notes, or other obligations issued by the city during the most
recently completed fiscal years
Applicable lists for other fiscal years beginning on or after 7/1 /2024, for
which obligations remain unpaid
Including amount of issuance, project or purpose of the issuance, whether
the issuance was approved at the election, eligible to be subject to a petition
for an election, or was exempt from approval at the election
07/17/2023 House File 718 - New Property Tax Lav, 39
Total Annual Impact
Adjusted General
Fund Levy
Homestead Tax
Exemption 65+
Military Tax
Exemption
Urban Revitalization
Taxpayer Statement
Mailing Cost
we • i
$360,000-$800,000
(Variable)
$350,000
(Estimated)
$801000
(Estimated)
Total Estimate
Developer
$12,000
(estimated)
$802,000-$1,242,000
"Mr 4R
07/17/2023 House File 718 - New Property Tax Law 40
IF
�-
_
- S -
'� sIF
House File 718
New Property Tax Law
. I'm Io"rw
Levy limitation
Levy consolidation
Adjusted city
based on property
general fund levy
tax valuation
growth tiers
I
Military service
Property tax
Required
exemption
abatement
statement mailed
agreements and
to property
expansion
limits
owners
Single date Bond financing Regional transit
annually for bond and reporting funding
elections I requirements
I
New homestead
exemption age
65+
Changes to
budget timelines,
forms, hearings &
processes
County Auditor
reports -
revaluation/other
additions
_ MOW
1-2
e 1 y
J 1 � N
a.-
Levy
Consolidation
Adjusted City General Fund
Levy
What Levies are Combined?
• 384.12
(1)
Instrumental/Vocal Music
• 384.12
(9) Aid to a Transit Company
Groups
• 384.12
(1 1) Rent, Insurance, Maintenance of Civic Center
• 384.12
(2)
Memorial Buildings
• 384.12
(12) Operation &Maintenance of City -owned
• 384.12
(3)
Symphony Orchestra
Civic Center
• 384.12
(4)
Cultural & Scientific Facilities
. 384.12
(13) Planning a Sanitary Disposal Project
• 384.12
(5)
County Bridge
• 384.12
(15) Levee Improvement Fund in a Special
p p
• 384.12
(6)
Mississippi or Missouri River
Charter City
Bridge
Construction
• 384.12
(16) Maintain Institution Received by Gift/Devise
• 384.12
(7)
Bridge Purchase
• 384.12
(18) City Emergency Medical District
• 384.12
(8)
Contract for Use of Bridge
• 384.12
(20) Support Public Library
7/17/2023 House File 718 - New Property Tax Law
Levies Not Included in Adjusted City
General Fund Levy Limitation
• Debt Service
• Pensions
• Employee Benefits
• Operations and Maintenance of Municipal
Transit
• Aviation Authority
• Tort and Self -Insurance
• Capital Improvement Reserve Fund
• Support for Local Emergency Management
Commission
• Emergency Services District
• Levy to Exceed a Maximum Amount Set in
Code - Newly -Defined Parameters
7/17/2023 House File 718 - New Property Tax Law
Important Timing Notes
0
Fiscal Year 2024:
Baseline of Adjusted City
General Fund Levy
Fiscal Year 2025-2028: �
Levy Limit Calculation owl
Limited to This Period
Fiscal Year 2025: First
Annual Adjusted City
General Fund Levy
Fiscal Year 2029:
Adjusted City General
Fund Levy Limited to
$8.10
07/17/2023 House File 718 - New Property Tax Law
Calculating the New Adjusted City General
Fund Levy
1. Find City's
non TIF
taxable
value including
gas & electric and
excluding
ag land
and ag
building for the
current fiscal year
2. Find City's
non TIF
taxable
value including
gas & electric and
excluding
ag land
and ag
building for the
next fiscal year
2a. Calculate growth rate by taking difference between step #2 and
step #1 and dividing by step #1
3. Calculate baseline general fund levy - combine all levy rates
being merged in addition to existing general fund levy
07/17/2023 House File 718 - New Property Tax Lave
Calculating the New Adjusted City General
Fund Levy (continued)
4. Based on results of step #2 and #3, following options
Tier I: Growth rate from step #2 is less than 3%
• If ACGFL from step #3 is greater than $8.10 AND non TIF taxable
value growth from step #2 is less than 1.03 , stop. Use calculated
ACGFL for current year as maximum ACGFL for next budget year.
• If ACGFL from step #3 is less than $8.10 AND non TIF taxable
value growth from step #2 is less than 1.03, stop. $8.10 is your
maximum ACGFL for the next budget year.
9/4/20XX House File 718 - New Property Tax Law
Calculating the New Adjusted City General
Fund Levy (continued)
Tier II: Growth rate from step #2 is between than 3%-5.99%
• If non TIF taxable value growth from step #2 is between 1.03 and
1.059, multiply your step #1 result by 1.02. Continue to Step 5.
Tier III: Growth rate from step #2 is above 6% or greater
• If non TIF taxable value growth
from
step #2 is 1.06
or
greater,
multiply your step #1 result by
1.03.
Continue to
Step
5.
07/17/2023 House File 718 - New Property Tax Law
Calculating the New Adjusted City General
Fund Levy (continued)
5. Sum property taxes certified with utility replacement request that
are generated by levies combined instep #3 for current year
6. Calculate the new maximum Adjusted City General Fund Levy
(ACGFL):
1,000*(amount from step #5 / amount from step #4)
07/17/2023 House File 718 - New Property Tax Law 10
City of Dubuque Calculation
2016 $2,255,562,993 0.24% $8.10 $18,270,060 $8.10 $18,270,060 $0
2017 $2,358,056,508 0.57% $8.10 $19,100,258 $8.10 $19,100,258 $0
i
2018
$2,371,609,335
5.37%
$8.10
$19,210,036
$7.94
$18,830,578
-$379,458
2019
$2,499,017,299
5.37%
$8.10
$20,242,040
$7.78
$19,442,354
-$799,686
2020
$2,542,043,245
1.72%
$8.10
$20,590,550
$8.10
$20,590,550
$0
2021
$2,579,355,511
1.47%
$8.10
$20,892,780
$8.10
$20,892,780
$0
2022
$2,646,230,849
2.59%
$8.10
$21,434,470
$8.10
$21,434,470
$0
2023
$2,695,861,021
1.88%
$8.10
$21,836,474
$8.10
$21,836,474
$0
2024
$2,684,506,784
-0.421 %
$8.10
$21,744,505
$8.10
$21,744,505
$0
07/17/203 House File 718 - New Property Tax Law
Homestead
Property Tax
Credit &
Exemption
Property Owners 65 and Older
M,
New homestead
exemption for
property owners
aged 65+
Fiscal Year
2026+: $6,500
additional
exemption
In addition to
current
homestead credit
Current
homestead credit
will continue to
be state funded
Fiscal Year 2025:
$3,250 additional
exemption
65+ homestead
exemption no
state
reimbursement
65+ Homestead Exemption Application
Property
Tax Homestead Tax Credit and Exemption
laws Cade dhapter425 and Iowa Administrative Code rule 701-110.1
This application must he filed or postmarked to your city or county assessor on or before July 1 of We
year in which the credit or exemption is first claimed. Upon tiling and allowance of the claim, the claim Is
allowed on that homestead for successive years without further filing as long as the person qualifles for
the homestead credl¢ or exemption. A claim filed after July 1 of the year for which the person is claiming
the creditor exemption shall be considered a claim fled for the following year. Contact information for
all assessors can be found al the Iowa State Association of Assessors webate: iows-assessors.org
Prim property Imormatill
Parcel number: Owner
Owner Brrlhdate•: _1_!_ •Beginning with assessment year 2023, claimants aged 65 years or
alder may claim a homestead exemption In addition to the homestead credit.
Property location address:
City: State
Property owner mailing address:
ZIP:
City: State ZIP:
County: Number of acres:
Phone. Email:
Type of ownership (check one): deed: J contract: L inheritance: Q other. rj
Evidence of ownership on file in Ixmklpage or Instrument number:
I began to occupy this homestead on this date: and will a Iry the
dwelling house. in good faith, an July 1 and far at least six months during that calendar year, or I am
confined in a nursing home, extended -care facility, or hospital and the homestead Is maintained and
not leased or rented. or I am on active duty in the military.
I declare residency in Iowa for purposes ❑f income laxati❑n and that no other application for homestead
credit or exemption has been filed on other property -
Previous address:
City: _. Stale: ZIP:
Do you still own she previous address?
Yes L No.[]. If Yes, is the property for sale f] or rent ❑4
Was this property part of a distribution made pursuant to Iowa Code chapter 598 (Dissolution of
Marriage)?
Homestead Tax Credit and Exemption, page 2
certify that a smoke detector or smoke detectors meeting the requirements of Iowa Cade section
100.18 and Iowa Administrative Code chapter 661-210.
has been installed. L er will he installed within 30 days of filing this application: 711
This homestead contains a fuel -fired heater or appliance, a fireplace, or an attached garage:
Yes ❑ No fS
it Yes, I certify [hat a carbon monoxide alarm meeting the requirements of Iowa Cade section 100.18:
has been installed: Ell w will be installed within 30 days of filing [his application: ❑I
was 65 years old or older on or before January 1 of the year of [his application and I am claiming the
homestead exemption.
Yes _1 No Ll
I, the undersigned, declare under penalties of perjury or false cerllflcale, that I have examined this
application, and, to the best of my knowledge and bellef, it Is true, correct, and complete.
Slgnature: Date
Written notification must he given to the assessor upon conveyance of this properly or Its
discontinued use as your homestead
ASSESSOR USE ONLY
Assessor or authorized representative:
Parcel number -
recommend that the application fcr credk be: Allowed: ❑ Disallowed: ❑
If the claimant Is claiming [he homestead exemption, I recommend that the application for exemption be
Allowed: ❑ Disallowed: ❑
It the assessor recommends disallowance, provide reasons for the recommendation below:
• Applications are due
7/1 /2023 for Fiscal
Year 2025
• If exemption is
granted, exemption
allowed for future
years without future
filing as long as
claimant continues
to qualify
07/17/2023 House File 718 - New Property Tax Law
WORM AN
18.9% of people in Dubuque are 65 and over
Estimated 5,638 new exemptions for 65+
Average assessed value of residential home $159,503
Fully implemented exemption would be $64.36 in FY 26
$345,484 estimated cost to City of Dubuque in FY 26
Military
Property Tax
Credit &
Exemption
Increased Exemption
Military Property Tax Credit & Exemption
p Fiscal Year 2024 and Prior a $1,852 credit funded by the State of Iowa
Fiscal Year 2025 increased to $4,000 and changes to exemption not funded by
State of Iowa
AA 2,011 households receive Military Service Property Tax Credit
A 1 $79,656 estimated cost to City of Dubuque in FY 25
7/17/2023 House File 718 - New Property Tax Lave
Property Tax
Abatement
Agreements
and Limits
Consult Bond Counsel
M,
1
1
ig Iowa Code Chapter 404 Urban
i
Revitalization Areas
Requires minimum assessment
agreements for commercial properties
Applies to revitalization areas created
0 in Fiscal Year 2025 and after
� Applied to first -year exemption
applications in existing revitalization
areas filed July 1, 2024 and after
Prohibits property tax abatement for school
of revitalization areas for residential projects
Beginning
and after
district portion
with revitalization areas created Fiscal Year 2025
gRg First -year exemption applications in existing revitalization
areas filed July 1, 2024 and after
Includes 7,266 properties and encompasses T,
acres
Application for improvements in 2023 is due by
2/1/24
Residential: 10% increase in assessed value, 10 years
of tax exemption on 100% of increased valuation
Commercial: 15% increase in assessed value, 3 years
of tax exemption on 100% of increased valuation
Transit
Funding
City of Des Moines
Transit
Funding -Des
Moines Area
Regional
Transit
Authority
• Allows City of Des Moines to go up to
7.5% franchise fees, with any portion
above 5% required to be dedicated to
Des Moines Area Regional Transit
Authority (DART)
07/17/2023 House File 718 - New Property Tax Law 23
County
Auditor
Valuation
Reports
Fiscal Year 2026
Beginning Fiscal year 2026
9
County Auditor valuation reports
Aeports must distinguish between
revaluation or other types of
addition to the value within the
abstract
Local
Government
Budgets
Taxpayer Statements
Local Government Budgets
and Taxpayer Statements
March 15: Cities must file a report with Iowa
Department of Management containing
information specified by new law to be
contained in mailings
• March 20: County Auditor must send each
property owner or taxpayer with the county by
regular mail an individual statement with the
specified information broken out by political
subdivision comprising the taxpayer's district
07/17/2023 House File 718 - New Property Tax Law 27
Taxpayer Statements
Must include:
1. Sum of current fiscal year's actual property taxes certified for a levy for all the district's
levies and the combined property tax rate per $1,000
2. Combined effective property tax rate for the district calculated using the sum of the current
fiscal year's actual property tax certified for levy of all of district's levies
3. Combined amount of the property tax dollars to be certified for all of the district's levies for
the budget year and the proposed combined property tax rate per $1,000
4. If the property tax dollars specified under (3) exceed the current fiscal year's actual
property tax dollars certified for levy specified in (1), a detailed statement of the major
reasons for the increase, including the specific purposes or programs for which the district
is proposing an increase;
07/17/2023 House File 718 - New Property Tax Law 28
Taxpayer Statements (continued)
5. An example comparing the amount of property taxes on a residential property with an actual value
Of $100,000 in the current fiscal year and such amount on the residential property using the
proposed property tax dollars for the budget year, including the percentage difference in such
amounts;
6. An example comparing the amount of property taxes on a commercial property with an actual value
of $100,000 in the current fiscal year and such amount on the commercial property using the
proposed property tax dollars for the budget year, including the percentage difference in such
amounts;
7. The district's percentage of total property taxes certified for levy in the owner's or taxpayer's taxing
district in the current fiscal year among all taxing authorities;
8. The date, time, and location of the district's public hearing on the information contained in the
statements.
9. Information on how to access the political subdivision's internet site, the political subdivision's
statements under this section, and other budget documents for prior fiscal years.
07/17/2023 House File 718 - New Property Tax Law 29
Public Hearing
Public hearing on proposed property tax
amounts for the budget year and new taxpayer
statements
• In addition to public hearing to adopt the
budget
• Must be separate from any other meeting of
City Council, including any other meeting or
hearing related to the budget
City Council can decrease, but not increase, the
proposed property tax amount to be included
in budget
07/17/2023 House File 718 - New Property Tax Law 30
Budget Certification Deadline:
April 30th instead of March 31 st
07/17/2023 House File 718 - New Property Tax Law
Bond
Elections
Single Date
Bond Elections
• Effective July 1, 2023 and after
• Elections on the question of issuing
bonds
• First Tuesday after the first Monday in
November
07/17/2023 House File 718 - New Property Tax Law 33
Bond
Financing
Increase in Limits
Bond Financing
• Effective July 1, 2024
• 30% increase to limits to enter into loan agreements payable
from general fund
• 30%increase to limits for general corporate purpose
referendum thresholds
• Estimate of annual increase in property taxes as result of bond
issuance of a residential property with value of $100,000 be
added to notice of proposed action
07/17/2023 House File 718 - New Property Tax Law
Bond
Financing
Impact -
Dubuque
• Increases General Obligation
Corporate threshold from $700,000 to
$910,000
07/17/2023 House File 718 - New Property Tax Law 36
Annual
Finance
Report
Requirement Changes
Annual Financial Report Requirements
Effective December 1, 2025
CList of bonds, notes, or other obligations issued by the city during the most recently completed fiscal years
Applicable lists for other fiscal years beginning on or after 7/1 /2024, for which obligations remain unpaid
Including amount of issuance, project or purpose of the issuance, whether the issuance was approved at the
election, eligible to be subject to a petition for an election, or was exempt from approval at the election
07/17/2023 House File 718 - New Property Tax Law
Total Annual Impact
Adjusted General
Fund Levy
Homestead Tax
Exemption 65+
Military Tax
Exemption
Urban Revitalization
Taxpayer Statement
Mailing Cost
Total Estimate
m acW
$360,000-$800,000
(Variable)
$346,000
(Estimated)
$801000
(Estimated)
Developer
$3,000
(estimated)
$789,000-$1,229,000
"Mr
... -_
07/17/2023 House File 718 - New Property Tax Law 39
IF
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