This bill mandates the Iowa Department of Revenue, in collaboration with the Department of Government Efficiency Task Force, to issue a request for proposals (RFP) for a private entity to conduct a study on local taxing authorities. The goal of the study is to identify the most efficient and cost-effective methods for these authorities to levy and collect taxes, as well as assess property values. The RFP must be issued by July 1, 2026, with a contract awarded by October 1, 2026. The funding structure for the study stipulates that 90% of the total cost will be covered by the state, while the remaining 10% will be the responsibility of the local taxing authorities, as determined by the Department of Revenue.

Additionally, the bill requires the Department of Revenue to present a report to the General Assembly detailing the findings of the study by June 30, 2027. It defines local taxing authorities to include counties, cities, school districts, townships, and entities organized under Chapter 28E with taxing authority. Notably, the bill specifies that Section 25B.2, subsection 3 of the Iowa Code, which typically allows political subdivisions to avoid compliance with state mandates if funding is not provided, does not apply to this Act. This means that political subdivisions will be required to comply with any state mandates included in the bill, regardless of funding availability.