House File 39 - Introduced HOUSE FILE 39 BY GUSTOFF A BILL FOR An Act relating to local governments by modifying individual 1 property tax statements mailed to owners and taxpayers, and 2 requiring notifications by mail of bond issuances. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1116YH (2) 91 jm/md
H.F. 39 Section 1. Section 24.2A, subsection 2, paragraph b, Code 1 2025, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (07) For budgets for fiscal years 3 beginning on or after July 1, 2026, a comparison of the amount 4 of property taxes due on the owners or taxpayers property for 5 the current fiscal year and the estimate of the proposed amount 6 of property taxes due on the owners or taxpayers property for 7 the budget year, including the percentage in change in such 8 amounts. 9 Sec. 2. Section 331.442, subsection 2, paragraph a, Code 10 2025, is amended to read as follows: 11 a. The board shall publish notice of the proposal to issue 12 the bonds, including a statement of the amount and purpose of 13 the bonds, a statement of the estimated cost of the project for 14 which the bonds are to be issued, and an estimate of the annual 15 increase in property taxes as the result of the bond issuance 16 on a residential property with an actual value of one hundred 17 thousand dollars. The notice shall be published as provided in 18 section 331.305 with the minutes of the meeting at which the 19 board adopts a resolution to call a county special election to 20 vote upon the question of issuing the bonds. The cost of the 21 project, as published in the notice pursuant to this paragraph, 22 is an estimate and is not intended to be binding on the board 23 in later proceedings related to the project. In addition to 24 publishing the notice of the proposal to issue the bonds, 25 the board shall mail a copy of the notice of the proposal by 26 regular mail to each eligible elector of the county. 27 Sec. 3. Section 384.25, subsection 2, Code 2025, is amended 28 to read as follows: 29 2. Before the council may institute proceedings for the 30 issuance of bonds for an essential corporate purpose, a notice 31 of the proposed action, including a statement of the amount 32 and purposes of the bonds, and an estimate of the annual 33 increase in property taxes as the result of the bond issuance 34 on a residential property with an actual value of one hundred 35 -1- LSB 1116YH (2) 91 jm/md 1/ 3
H.F. 39 thousand dollars, and the time and place of the meeting at 1 which the council proposes to take action for the issuance of 2 the bonds, must be published as provided in section 362.3 . In 3 addition to publishing the notice of the proposed action, the 4 council shall mail a copy of the notice of the proposed action 5 by regular mail to each eligible elector of the city. At the 6 meeting, the council shall receive oral or written objections 7 from any resident or property owner of the city. After all 8 objections have been received and considered, the council may, 9 at that meeting or any adjournment thereof, take additional 10 action for the issuance of the bonds or abandon the proposal 11 to issue the bonds. Any resident or property owner of the 12 city may appeal the decision of the council to take additional 13 action to the district court of the county in which any part of 14 the city is located, within fifteen days after the additional 15 action is taken, but the additional action of the council is 16 final and conclusive unless the court finds that the council 17 exceeded its authority. The provisions of this subsection with 18 respect to notice, hearing, and appeal, are in lieu of the 19 provisions contained in chapter 73A , or any other law. 20 Sec. 4. IMPLEMENTATION OF ACT. Section 25B.2, subsection 21 3, shall not apply to this Act. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanations substance by the members of the general assembly. 25 This bill relates to local governments by modifying 26 individual property tax statements mailed to owners and 27 taxpayers, and providing notifications by mail of bond 28 issuances. 29 For budgets for fiscal years beginning on or after July 1, 30 2026, the individual property tax statements mailed to owners 31 and taxpayers shall contain a comparison of the amount of 32 property taxes due on the owners or taxpayers property for 33 the current fiscal year and the estimate of the proposed amount 34 of property taxes due on the owners or taxpayers property 35 -2- LSB 1116YH (2) 91 jm/md 2/ 3
H.F. 39 for the budget year, including the percentage change in such 1 amounts. 2 Currently, a city or county must publish the notice of a 3 proposal to issue bonds. The bill requires the city or county 4 to mail a copy of the notice to issue bonds by regular mail to 5 each eligible elector of the city or county, as applicable. 6 The bill may include a state mandate as defined in Code 7 section 25B.3. The bill makes inapplicable Code section 25B.2, 8 subsection 3, which would relieve a political subdivision from 9 complying with a state mandate if funding for the cost of 10 the state mandate is not provided or specified. Therefore, 11 political subdivisions are required to comply with any state 12 mandate included in the bill. 13 -3- LSB 1116YH (2) 91 jm/md 3/ 3