Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends regulations for local property taxes in Iowa.

Highlights:

• Amends county general and rural services levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the Consumer Price Index (CPI), with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 1-9).

• Amends city general fund levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the CPI, with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 10-15).

• Increases the State school foundation base to 100.0% of the regular program State cost per pupil, reduces the uniform levy rate, and eliminates various property tax replacement payments and related appropriations beginning in FY 2027 (Sec. 16-41).

• Establishes a multiresidential property class; phases out the residential, multiresidential, commercial, and industrial assessment limitation; removes the agricultural residential rollback tie; and modifies how agricultural buildings are assessed (Sec. 42-65).

• Repeals the homestead credit and replaces it with a phased-in homestead (Sec. 66-82).

• Increases the military property tax exemption (Sec. 83-84).

• Establishes revenue-based growth limitations for county hospital and emergency medical services (EMS) levies (Sec. 85-89).

• Establishes revenue-based limitations for most rate-limited property tax levies, restricts the use of debt for general operations, and establishes a legislative study of future levy rate structures (Sec. 90-96).

• Authorizes local option sales and services taxes to be imposed at rates of up to 1.25% (Sec. 97-100).

• Requires annual inflation-based adjustments to motor vehicle registration fees and fuel taxes (Sec. 101-107).

• Amends the assessor levy by imposing revenue-based growth limitations and restrictions (Sec. 108-112).

• Reduces levy rate limits and establishes growth limitations for regional transit district and municipal transit system property tax levies (Sec. 113-116).

• Amends the duties of the Utility Replacement Tax Task Force (Sec. 117-118).

• Establishes amendments to local government budget statements, notice requirements, and budget procedures (Sec. 119-129).

• Amends provisions related to distorted market valuations and the equalization process (Sec. 130).

• Amends provisions related to the property tax treatment and exemption structure for data center and web search portal business property (Sec. 131-133).

• Establishes the FirstHome Iowa Program and a related fund to assist with first time homeownership (Sec. 134-153).

• Amends the Elderly and Disabled Property Tax Credit by eliminating the property tax freeze provision and increasing the maximum benefit (Sec. 154-161).

• Repeals the property tax exemption for impoundment structures and speculative shell buildings (Sec. 162-165).

• Establishes an unspent balance cap and allows schools to request budget adjustment (Sec. 166-169).

• Requires county auditors to submit an annual report that includes parcel identification information (Sec. 170).

• Exempts wind energy conversion property, the school district foundation levy, and EMS levies from urban renewal tax increment calculations (Sec. 171-178).

• Establishes a task force to study property tax deferral options for low-income elderly homestead owners and report to the Legislature (Sec. 179).

• Establishes a task force to study payments in lieu of property taxes and report recommendations to the Legislature (Sec. 180).

Full Bill Text

Vote Smart's Synopsis:

Vote to concur with House amendments and further amend a bill that amends regulations for local property taxes in Iowa.

Highlights:

• Amends county general and rural services levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the Consumer Price Index (CPI), with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 1-9).

• Amends city general fund levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the CPI, with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 10-15).

• Increases the State school foundation base to 100.0% of the regular program State cost per pupil, reduces the uniform levy rate, and eliminates various property tax replacement payments and related appropriations beginning in FY 2027 (Sec. 16-41).

• Establishes a multiresidential property class; phases out the residential, multiresidential, commercial, and industrial assessment limitation; removes the agricultural residential rollback tie; and modifies how agricultural buildings are assessed (Sec. 42-65).

• Repeals the homestead credit and replaces it with a phased-in homestead (Sec. 66-82).

• Increases the military property tax exemption (Sec. 83-84).

• Establishes revenue-based growth limitations for county hospital and emergency medical services (EMS) levies (Sec. 85-89).

• Establishes revenue-based limitations for most rate-limited property tax levies, restricts the use of debt for general operations, and establishes a legislative study of future levy rate structures (Sec. 90-96).

• Authorizes local option sales and services taxes to be imposed at rates of up to 1.25% (Sec. 97-100).

• Requires annual inflation-based adjustments to motor vehicle registration fees and fuel taxes (Sec. 101-107).

• Amends the assessor levy by imposing revenue-based growth limitations and restrictions (Sec. 108-112).

• Reduces levy rate limits and establishes growth limitations for regional transit district and municipal transit system property tax levies (Sec. 113-116).

• Amends the duties of the Utility Replacement Tax Task Force (Sec. 117-118).

• Establishes amendments to local government budget statements, notice requirements, and budget procedures (Sec. 119-129).

• Amends provisions related to distorted market valuations and the equalization process (Sec. 130).

• Amends provisions related to the property tax treatment and exemption structure for data center and web search portal business property (Sec. 131-133).

• Establishes the FirstHome Iowa Program and a related fund to assist with first time homeownership (Sec. 134-153).

• Amends the Elderly and Disabled Property Tax Credit by eliminating the property tax freeze provision and increasing the maximum benefit (Sec. 154-161).

• Repeals the property tax exemption for impoundment structures and speculative shell buildings (Sec. 162-165).

• Establishes an unspent balance cap and allows schools to request budget adjustment (Sec. 166-169).

• Requires county auditors to submit an annual report that includes parcel identification information (Sec. 170).

• Exempts wind energy conversion property, the school district foundation levy, and EMS levies from urban renewal tax increment calculations (Sec. 171-178).

• Establishes a task force to study property tax deferral options for low-income elderly homestead owners and report to the Legislature (Sec. 179).

• Establishes a task force to study payments in lieu of property taxes and report recommendations to the Legislature (Sec. 180).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends regulations for local property taxes in Iowa.

Highlights:

• Amends county general and rural services levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the Consumer Price Index (CPI), with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 1-9).

• Amends city general fund levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the CPI, with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 10-15).

• Increases the State school foundation base to 100.0% of the regular program State cost per pupil, reduces the uniform levy rate, and eliminates various property tax replacement payments and related appropriations beginning in FY 2027 (Sec. 16-41).

• Establishes a multiresidential property class; phases out the residential, multiresidential, commercial, and industrial assessment limitation; removes the agricultural residential rollback tie; and modifies how agricultural buildings are assessed (Sec. 42-65).

• Repeals the homestead credit and replaces it with a phased-in homestead (Sec. 66-82).

• Increases the military property tax exemption (Sec. 83-84).

• Establishes revenue-based growth limitations for county hospital and emergency medical services (EMS) levies (Sec. 85-89).

• Establishes revenue-based limitations for most rate-limited property tax levies, restricts the use of debt for general operations, and establishes a legislative study of future levy rate structures (Sec. 90-96).

• Authorizes local option sales and services taxes to be imposed at rates of up to 1.25% (Sec. 97-100).

• Requires annual inflation-based adjustments to motor vehicle registration fees and fuel taxes (Sec. 101-107).

• Amends the assessor levy by imposing revenue-based growth limitations and restrictions (Sec. 108-112).

• Reduces levy rate limits and establishes growth limitations for regional transit district and municipal transit system property tax levies (Sec. 113-116).

• Amends the duties of the Utility Replacement Tax Task Force (Sec. 117-118).

• Establishes amendments to local government budget statements, notice requirements, and budget procedures (Sec. 119-129).

• Amends provisions related to distorted market valuations and the equalization process (Sec. 130).

• Amends provisions related to the property tax treatment and exemption structure for data center and web search portal business property (Sec. 131-133).

• Establishes the FirstHome Iowa Program and a related fund to assist with first time homeownership (Sec. 134-153).

• Amends the Elderly and Disabled Property Tax Credit by eliminating the property tax freeze provision and increasing the maximum benefit (Sec. 154-161).

• Repeals the property tax exemption for impoundment structures and speculative shell buildings (Sec. 162-165).

• Establishes an unspent balance cap and allows schools to request budget adjustment (Sec. 166-169).

• Requires county auditors to submit an annual report that includes parcel identification information (Sec. 170).

• Exempts wind energy conversion property, the school district foundation levy, and EMS levies from urban renewal tax increment calculations (Sec. 171-178).

• Establishes a task force to study property tax deferral options for low-income elderly homestead owners and report to the Legislature (Sec. 179).

• Establishes a task force to study payments in lieu of property taxes and report recommendations to the Legislature (Sec. 180).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends regulations for local property taxes in Iowa.

Highlights:

• Amends county general and rural services levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the Consumer Price Index (CPI), with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 1-9).

• Amends city general fund levy limitations by establishing a revenue-based growth cap tied to prior-year property tax dollars and the CPI, with adjustments for new valuation and inflation beginning in FY 2027 (Sec. 10-15).

• Increases the State school foundation base to 100.0% of the regular program State cost per pupil, reduces the uniform levy rate, and eliminates various property tax replacement payments and related appropriations beginning in FY 2027 (Sec. 16-41).

• Establishes a multiresidential property class; phases out the residential, multiresidential, commercial, and industrial assessment limitation; removes the agricultural residential rollback tie; and modifies how agricultural buildings are assessed (Sec. 42-65).

• Repeals the homestead credit and replaces it with a phased-in homestead (Sec. 66-82).

• Increases the military property tax exemption (Sec. 83-84).

• Establishes revenue-based growth limitations for county hospital and emergency medical services (EMS) levies (Sec. 85-89).

• Establishes revenue-based limitations for most rate-limited property tax levies, restricts the use of debt for general operations, and establishes a legislative study of future levy rate structures (Sec. 90-96).

• Authorizes local option sales and services taxes to be imposed at rates of up to 1.25% (Sec. 97-100).

• Requires annual inflation-based adjustments to motor vehicle registration fees and fuel taxes (Sec. 101-107).

• Amends the assessor levy by imposing revenue-based growth limitations and restrictions (Sec. 108-112).

• Reduces levy rate limits and establishes growth limitations for regional transit district and municipal transit system property tax levies (Sec. 113-116).

• Amends the duties of the Utility Replacement Tax Task Force (Sec. 117-118).

• Establishes amendments to local government budget statements, notice requirements, and budget procedures (Sec. 119-129).

• Amends provisions related to distorted market valuations and the equalization process (Sec. 130).

• Amends provisions related to the property tax treatment and exemption structure for data center and web search portal business property (Sec. 131-133).

• Establishes the FirstHome Iowa Program and a related fund to assist with first time homeownership (Sec. 134-153).

• Amends the Elderly and Disabled Property Tax Credit by eliminating the property tax freeze provision and increasing the maximum benefit (Sec. 154-161).

• Repeals the property tax exemption for impoundment structures and speculative shell buildings (Sec. 162-165).

• Establishes an unspent balance cap and allows schools to request budget adjustment (Sec. 166-169).

• Requires county auditors to submit an annual report that includes parcel identification information (Sec. 170).

• Exempts wind energy conversion property, the school district foundation levy, and EMS levies from urban renewal tax increment calculations (Sec. 171-178).

• Establishes a task force to study property tax deferral options for low-income elderly homestead owners and report to the Legislature (Sec. 179).

• Establishes a task force to study payments in lieu of property taxes and report recommendations to the Legislature (Sec. 180).

Full Bill Text