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 study 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 and 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 submit 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, which typically allows political subdivisions to be exempt from state mandates if funding is not provided, does not apply here. This means that any state mandates resulting from this bill will require compliance from political subdivisions regardless of funding availability.