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 deleting a subsection and establishing a maximum property tax levy amount for governmental entities, excluding school districts, starting from the budget year beginning July 1, 2027. The bill also provides for voter-approved property tax levies and outlines compliance processes for governmental entities with these new limitations. A new subsection in Section 427.1 offers a property tax exemption for residential properties, which will not apply to school district taxes, with retroactive applicability for assessment years beginning on or after January 1, 2026.

Moreover, the bill modifies the procedures for issuing general obligation bonds by local governments, particularly emphasizing voter approval. Starting July 1, 2026, all bonds issued by counties and cities for essential and general purposes will require a minimum of 60 percent voter approval, eliminating previous options for issuing bonds without an election. It also mandates that bonds cannot be sold without prior notice, a public hearing, and subsequent voter approval. The bill sets a maximum aggregate amount of property tax dollars that can be certified for levy by governmental entities, introduces a property tax exemption for residential properties of up to $25,000 in taxable value (excluding school district taxes), and enhances transparency in property tax information disclosures to taxpayers. Overall, these amendments aim to improve accountability and transparency in local government financing and taxation.

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