This bill proposes significant modifications to local government property tax regulations in Iowa, particularly affecting levy rates for county and city services, as well as school funding. It establishes a new timeline for levy rates, moving the previous deadline of July 1, 2028, to July 1, 2026, and introduces a formula for calculating these rates based on the current fiscal year's property tax dollars and total assessed value, excluding new valuation. The bill also revises foundation property tax rates for school districts, decreasing the rate from $5.40 to $3.40 per thousand dollars of assessed valuation over the budget years from July 1, 2026, to July 1, 2029, and introduces a new foundation property tax for reorganized school districts. Additionally, it outlines new provisions for property tax adjustment aid and imposes limitations on unexpended fund balances in school district management levy funds.

Moreover, the bill modifies existing laws regarding property tax credits and exemptions, particularly for veterans and senior citizens, by establishing new eligibility criteria and increasing exemption amounts. It transitions the homestead property tax credit system to an exemption system, enhancing benefits for disabled veterans and adjusting assessment limitations for various property types. The bill also prohibits cities and counties from issuing bonds for general operations starting July 1, 2025, and increases the income threshold for property tax credits for individuals aged 70 and older. Overall, the bill aims to streamline property tax processes while providing targeted relief to specific groups and ensuring effective management of local government budgets.

Statutes affected:
Introduced: 331.423, 441.21, 384.12, 384.1, 257.3, 257.15, 257.16, 257.16D, 8.33, 298A.3, 298.4, 257.2, 423F.2, 425A.3, 444.3, 4.13, 425.1, 35.1, 425.1A, 425.2, 425.11, 483A.24, 483A.1, 426A.11, 165.18, 331.559