This bill amends various sections of the Iowa Code to modify local government property tax regulations, particularly focusing on levy rates for counties, cities, and school districts. It adjusts the levy rates for general county services and rural county services, changing the applicable fiscal years from those beginning on or after July 1, 2028, to those beginning on or after July 1, 2026. The bill introduces a new definition for "new valuation" and establishes a structured approach for city tax levies, including conditions for adjusting tax rates based on assessed value and the consumer price index. Additionally, it revises the foundation base per pupil for school funding, setting it at one hundred percent of the state cost per pupil starting from the budget year commencing July 1, 2026, while also reducing the foundation property tax rate for school districts.

Furthermore, the bill introduces new regulations regarding the certification of school district levies based on unexpended fund balances, with specific thresholds set to gradually decrease over the years. It also modifies the homestead property tax exemption for disabled veterans and elderly homeowners, establishing a new exemption rate and relocating the disabled veteran homestead credit. The bill aims to streamline property tax exemptions and assessment procedures, ensuring equitable distribution of resources while accommodating changes in property classifications and valuation methods. Overall, these amendments are set to take effect on January 1, 2026, and will apply 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