Iowa House Bill HF719

Iowa 2025-2026 Regular Session

• Introduced: 3/3/25
• Refer: 3/3/25

Caption

A bill for an act requiring the department of revenue to issue a request for proposals to study local taxing authority processes and procedures.

Impact

The legislation mandates that the Department of Revenue issue a request for proposals by July 1, 2026, with a contract awarded by October 1, 2026. Funding for the study will be split, with 90% of the costs borne by the state and 10% by the local taxing authorities, which may place a financial obligation on these entities depending on the results of the study. Additionally, the bill requires that findings from the study be reported to the General Assembly by June 30, 2027, providing a timeline for review and potential legislative actions based on the report's conclusions.

Summary

House File 719 aims to enhance the efficiency and effectiveness of local taxing authorities in Iowa by requiring the Department of Revenue to commission a study conducted by a private entity. This study is intended to explore the current processes and procedures utilized by local taxing authorities, including counties, cities, and school districts, to levy and collect taxes and assess property values. The study's primary focus is on identifying the most cost-effective methods for these entities to manage their taxation processes.

Contention

A notable point in HF719 is the inclusion of a state mandate concerning local government compliance with the findings of the study. This requirement could impose certain obligations on local taxing authorities, which may generate discussions regarding the adequacy of funding and resources to implement any recommendations arising from the study. Furthermore, by making Code section 25B.2 inapplicable, the bill ensures that local authorities cannot claim exemption from state mandates if funding is not specified, potentially limiting local autonomy in taxation matters.