This bill modifies property tax calculations in Iowa, specifically addressing the amounts due for residential, agricultural, commercial, and industrial properties. For fiscal years beginning on or after July 1, 2026, 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. The bill defines "qualified parcel" and outlines specific conditions under which properties may be excluded from these calculations, such as changes in ownership or new construction during the base year.

Additionally, the bill introduces a new section, 444.25, which establishes limitations on property tax amounts and requires proportional reductions in taxes due when thresholds are exceeded. It also makes corresponding amendments to various sections of the Iowa Code to ensure consistency with these new calculations and reductions. The bill specifies that property taxes do not include certain assessments or taxes approved at election, and it mandates compliance with state requirements for political subdivisions without the option for funding relief.

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