The bill revises the methodology for assessing the actual value of residential properties in Iowa, implementing new assessment limitations that will take effect for assessment years beginning on or after January 1, 2026. Under the new provisions, the actual value of individual residential properties will be capped at 100% of the previous year's value, with exceptions for properties that were not assessed in the prior year, underwent boundary changes, or experienced significant improvements. Additionally, the assessment percentage for residential properties will gradually increase from 55% in 2025 to 70% by 2028, with further increases planned to reach 100% by 2034.

Moreover, the bill introduces adjustments to property tax levy rates based on total taxable values, limiting the rate-limited property tax levy to a percentage of the maximum specified levy rate or the actual maximum levy approved at election, whichever is lower. This percentage will be determined by the ratio of the base year total taxable value to the budget year total taxable value, with specific provisions for fiscal years beginning before and after July 1, 2036. The bill aims to create a more equitable and consistent framework for property taxation in Iowa while ensuring compliance with fair market value assessments and establishing penalties for property owners who fail to report changes in property status related to low-income rental units.

Statutes affected:
Introduced: 441.21