257.12 - ADJUSTMENT IN STATE FOUNDATION AID.
257.12 ADJUSTMENT IN STATE FOUNDATION AID.
1. If a school district is required to repay property taxes paid
for school taxes levied on property originally assessed at five
million dollars or more because the assessment was subsequently
reduced by the action of the property assessment appeal board or
judicial action and the amount of the reduction in the assessment
equals at least one hundred thousand dollars or two percent of the
assessed value of all taxable property in the district prior to the
reduction, whichever is less, the school district is eligible for an
adjustment in state foundation aid. To receive the adjustment in
state foundation aid, the school district shall apply to the
department of management prior to the beginning of the budget year
following the budget year in which the repayment of the property
taxes occurred. The department of management shall determine the
amount of adjustment in state foundation aid pursuant to subsection
2.
2. The department of management shall determine the amount of
state foundation aid which the school district would have received
under section 257.1 if the amount of the school district's foundation
property tax was determined using the reduced assessment of the
applicable property. The difference between the amount of the state
foundation aid using the reduced assessment and the amount of state
foundation aid actually received under section 257.1 equals the
amount of the adjustment in state foundation aid to be paid to the
school district.
3. The adjustment in state foundation aid under this section
shall be paid as provided in section 257.16. If the application to
receive an adjustment in state aid was filed prior to April 15, the
adjustment shall be paid in the budget year. If the application is
made after April 15, the adjustment shall be paid in the following
budget year. Section History: Recent Form
2006 Acts, ch 1185, §78