This bill modifies property tax calculations in Iowa, specifically addressing the amounts due and payable for residential, agricultural, commercial, and industrial properties starting from fiscal years beginning on or after July 1, 2026. It establishes that if the calculated property taxes for a qualified parcel exceed 103% of the previous year's amount for residential or agricultural properties, or 108% for commercial or industrial properties, the amount due will be reduced accordingly. The bill defines "qualified parcel" and outlines specific conditions under which a parcel may not qualify for these reductions, such as changes in ownership or new construction during the base year.

Additionally, the bill introduces new legal language that requires the county auditor to round tax amounts to the nearest even whole dollar and to apply reductions as necessary under the new section 444.25, which details the property tax amount limitation reduction process. It also makes corresponding amendments to various sections of the Iowa Code to ensure consistency with these changes, including adjustments to how tax rates are certified and computed. The bill specifies that it does not apply to certain state mandates and clarifies that political subdivisions must comply with any state mandates included in the bill.

Statutes affected:
Introduced: 443.2, 444.1, 444.2, 444.25, 444.22, 427B.26