This bill proposes extensive amendments to the Iowa Code concerning local government property taxes, financial authority, and budgets, with a particular emphasis on adjusting levy rates for county, city, and school services. Key changes include the recalibration of levy rates for general and rural county services, which will now be based on specified amounts starting from fiscal years beginning July 1, 2026, instead of the previously set date of July 1, 2028. The bill introduces new calculations for determining these rates, incorporating adjustments based on the consumer price index and taxable valuation increases due to new construction. Additionally, it establishes requirements for levy rates starting from fiscal years beginning July 1, 2027, ensuring they are not less than a specified percentage of the previous year's certified property tax dollars.

Moreover, the bill modifies the foundation base per pupil for school funding, setting it at 100% of state costs per pupil starting from the budget year commencing July 1, 2026, and reduces the foundation property tax rate for school districts from $5.40 to $4.48662 per $1,000 of assessed valuation. It also introduces new provisions regarding unexpended fund balances in school districts, requiring certification to the school budget review committee. Other amendments include adjustments to agricultural property assessments, the introduction of a multiresidential property classification, and changes to homestead credits and exemptions, particularly for individuals aged 65 and older or those with disabilities. The effective date for many of these changes is set for January 1, 2026, with applicability to fiscal years beginning on or after July 1, 2026.

Statutes affected:
Introduced: 331.423, 331.510, 384.12, 257.3, 257.4, 257.1, 257.15, 257.16, 257.16D, 8.33, 298A.3, 297.36, 298.4, 257.2, 39.2, 423F.2, 423F.3, 425A.3, 444.3, 441.21, 386.11, 404.3, 404.3A, 427A.1, 441.49, 441.47, 335.30A, 4.13, 425.1, 35.1, 425.1A, 425.2, 425.11, 483A.24, 483A.1, 347A.3, 357F.8, 357G.8, 176A.10, 312.2, 331.429, 165.18, 331.559, 441.16, 97B.9, 28M.5