The bill significantly alters the methodology for property taxation in Iowa, particularly for residential, commercial, and industrial properties. It establishes that for assessment years beginning on or after January 1, 2027, the actual value of these properties cannot exceed 100% of the previous year's value, with exceptions for changes in ownership or significant improvements. Furthermore, starting from January 1, 2030, the actual value will be limited to an inflation-adjusted figure based on a defined annual inflation factor derived from the consumer price index for the Midwest. The bill also updates assessment percentages for residential properties, which will start at 44.534% in 2026 and increase to 50% by 2028, while retroactively applying these changes to assessments beginning in 2026.

In addition to property tax assessments, the bill modifies the procedures for bond issuance by local governments. It allows counties and cities to issue bonds for essential purposes without voter approval, while general purposes will still require a 60% voter threshold. The bill also reduces the number of signatures needed for a petition to trigger a special election on bond proposals from 20% to 10% of eligible voters. It removes previous limitations on school district indebtedness petitions and mandates that all bonds issued from the secure an advanced vision for education fund require 60% voter approval starting July 1, 2026. Overall, the bill aims to create a more standardized approach to property taxation and streamline the bond issuance process for local governments.

Statutes affected:
Introduced: 441.21, 441.45, 331.423, 331.403, 384.1, 441.37, 441.33, 75.1, 39.2, 331.441