This bill proposes significant changes to school district funding in Iowa, primarily by reducing the foundation property tax rate and repealing the education savings account program. Specifically, the foundation property tax rate will be decreased from $5.40 to $4.04 per $1,000 of assessed valuation on taxable property. For reorganized and dissolved school districts, the initial tax rate will be set at $4.40, with subsequent years seeing incremental increases to a maximum of $5.40. The bill also adjusts property tax credit calculations under the family farm tax credit and agricultural land tax credit programs to reflect the new foundation property tax rates.

In addition to the tax rate changes, the bill repeals the education savings account program, which previously provided funding for students attending nonpublic schools for various educational expenses. This repeal will take effect immediately upon enactment, with the changes applicable starting July 1, 2026, for school budget years beginning on or after that date. Overall, the bill aims to streamline school funding while reducing the financial burden on property owners.

Statutes affected:
Introduced: 257.3, 444.3, 257.10, 257.11B, 422.7