The proposed bill introduces a "redevelopment area homestead credit" designed to provide tax relief for properties classified as 1a or 1b within designated redevelopment areas recognized by the U.S. Department of Commerce. This credit is calculated at 70% of the property's net tax capacity multiplied by the city capital debt tax rate. The bill outlines the roles of county auditors in determining tax reductions and certifying amounts to the commissioner of revenue, who will reimburse local taxing jurisdictions for these reductions. Additionally, it mandates an annual appropriation from the general fund to cover these payments, with the effective date for implementation set for taxes payable in 2026.

Moreover, the bill amends existing property tax statement requirements to improve transparency for taxpayers. It requires that property tax statements for real and personal properties, including manufactured homes, include detailed information such as estimated market value, homestead market value exclusion, taxable market value, gross tax before credits, and applicable credits. The bill also allows counties to include notices from taxing districts regarding upcoming budget deliberations. Furthermore, it introduces a provision for rounding dollar amounts, including special assessments, to the nearest even whole dollar, with odd-numbered dollars adjusted to the next higher even-numbered dollar. These changes are also set to take effect for taxes payable in 2026.

Statutes affected:
Introduction: 273.1392, 273.1393, 275.065, 275.07, 275.08, 276.04