This bill aims to regulate local government finances by imposing limitations on property tax levy rates. It amends existing laws to specify that for fiscal years beginning before July 1, 2026, boards may certify an addition to a levy exceeding the permitted amounts only if approved by a majority vote at a special levy election. The bill introduces a new section stating that starting from fiscal years on or after July 1, 2026, the maximum levy rate for each specific levy imposed by a governmental subdivision cannot exceed 102 percent of the average levy rate per $1,000 over the previous five fiscal years, or any lower limit set by other laws.

Additionally, the bill allows for the maximum levy rate to be exceeded for one fiscal year within a five-year period if 60 percent of voters approve the increase in a special election. The process for rescinding the increased levy rate requires a simple majority vote. The general assembly is mandated to review this section during each subsequent assembly, with any changes requiring a 60 percent majority vote from both houses. The amendments to Code sections 331.425 and 384.12 further restrict cities and counties from exceeding certain levy limitations or levying additional taxes without majority approval at an election.

Statutes affected:
Introduced: 331.425, 331.423