The bill seeks to implement property tax limitations and amend various provisions concerning local government taxes, budgets, and authority in Iowa. It introduces a new subsection in Section 24.48, clarifying that the authority to suspend property tax levy limitations does not apply to those outlined in Section 444.25. Additionally, it amends Section 384.12 by removing a subsection and creates a new Section 444.25, which establishes a maximum property tax levy for governmental entities, excluding school districts. The bill also provides for voter-approved property tax levies and details the certification process for these levies. A new subsection in Section 427.1 offers a property tax exemption for residential properties, effective January 1, 2026, which does not apply to school district taxes.

Moreover, the bill modifies the procedures for issuing general obligation bonds by local governments, allowing county boards to create special service area tax districts for water-related projects, with debt service tax levies applicable only to properties within those districts. It streamlines the election process for bond issuance by removing the requirement for a petition from eligible electors, thus simplifying the process for counties and cities to secure funding for essential projects. Starting July 1, 2026, all bonds issued for essential and general purposes will require a minimum of 60 percent voter approval, enhancing transparency and accountability. The bill also sets a maximum aggregate amount of property tax dollars that can be certified for levy by governmental entities, excluding debt service levies, beginning with the budget year starting July 1, 2027, and expands the duties of councils of government to facilitate regional service consolidation among local governments.

Statutes affected:
Introduced: 24.48, 384.12, 331.510, 441.21, 24.2A, 25B.2, 8.5, 28E.17, 362.4, 331.462, 39.2, 331.441, 331.442, 331.443, 331.445, 359.43, 384.26, 384.28, 384.24, 384.25, 423F.2