The bill introduces comprehensive amendments to property tax regulations and funding mechanisms for state and local governments in Iowa, particularly focusing on the calculation of property tax levies for counties, cities, and school districts. Key changes include the establishment of new levy rates for general county services and rural county services, which will be determined based on a formula that factors in the assessed value of properties and the actual property tax dollars certified for levy. The bill also sets a new foundation base per pupil for school funding, increasing it to 100% starting July 1, 2027, while reducing the foundation property tax levy rate. Additionally, it introduces a new classification for multiresidential properties and outlines specific exemptions for veterans and individuals aged sixty-five and older, gradually increasing their tax exemptions over the coming years.

Furthermore, the bill modifies assessment procedures for various property types, including agricultural and residential properties, with a gradual increase in assessment percentages aimed at aligning property values with market conditions. It establishes caps on property tax levies for governmental entities, prohibits cities and counties from incurring debt for general operations funded by property tax levies, and mandates annual adjustments to motor vehicle registration fees based on the consumer price index. The effective date for many of these changes is set for January 1, 2027, with applicability to budgets and property taxes for fiscal years beginning on or after July 1, 2027. Overall, the bill aims to streamline property tax processes, ensure equitable distribution of resources, and provide specific exemptions and adjustments for various property classifications.

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, 425.11, 25B.7, 425.2, 483A.24, 483A.1, 347A.3, 357F.8, 357G.8, 176A.10, 312.2, 331.429, 423B.1, 423B.7, 321.116, 321.109, 452A.3, 441.16, 96.31, 28M.5, 437A.15, 24.2A, 24.3, 331.434, 384.16