The bill introduces comprehensive amendments to property tax levies and regulations for state and local governments in Iowa, focusing on enhancing fiscal responsibility and funding for education. Key provisions include the establishment of new maximum levy rates for counties and cities, which will be determined based on the greater of specified or adjusted rates, ensuring that property tax dollars certified for levy equal 100.5% of the previous year's amounts starting July 1, 2026. Additionally, the bill sets a gradual increase in the assessment percentage for residential properties, reaching 100% by January 1, 2037, while also introducing a tiered system for school district management levies based on unexpended fund balances.

Moreover, the bill modifies existing laws regarding homestead credits and exemptions, particularly for veterans and individuals aged sixty-five and older, streamlining the application process and enhancing benefits. It also prohibits cities and counties from issuing bonds for general operations funded by property tax levies, effective July 1, 2026, and establishes a legislative study committee to evaluate property taxation rates. The effective date for many provisions is set for January 1, 2027, with applicability to fiscal years beginning on or after July 1, 2027, aiming to ensure tax stability while allowing necessary adjustments for local governments and educational funding.

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