Iowa 2025-2026 Regular Session

Iowa House Bill HSB303

Introduced
3/5/25  

Caption

A bill for an act creating the foundation property tax reduction fund, and making appropriations and related transfers to the fund.

Impact

The introduction of HSB303 has significant implications for state laws regarding taxation and education funding. By creating this new fund, the state is changing how educational institutions are financed, ensuring that funds are allocated to maintain baseline educational services without imposing additional financial pressure on property owners. It aims to support school districts that may struggle with fluctuating property tax revenue while attempting to provide quality education. The bill's provisions also stipulate that any remaining funds at the close of the fiscal year will not revert to the general fund, thereby providing a sense of security for the educational budget.

Summary

House Study Bill 303 (HSB303) proposes the establishment of a foundation property tax reduction fund aimed at alleviating property tax burdens associated with education funding. Under this bill, a fund will be created to receive appropriations and other related transfers, directing resources towards reducing the foundation property tax levy rate. This fund is intended to provide financial relief to school districts by offsetting the amount they would typically collect from property taxes, thus ensuring stable funding for education without over-relying on property taxes from residents. This funding mechanism kicks in from the fiscal year beginning July 1, 2026.

Contention

Although HSB303 is designed to provide much-needed financial support for education, there are points of contention that could arise during legislative discussions. Critics may express concerns about the sustainability of funding through this mechanism, particularly in light of potential economic downturns that could reduce the state's budget surplus. Furthermore, detractors could question whether the withdrawal of funds from existing state funds, such as the Iowa economic emergency fund or the cash reserve fund, could jeopardize other essential services requiring state financing. The bill's reliance on these transfers may lead to debates on fiscal responsibility and the prioritization of educational funding over other necessary expenditures.

Companion Bills

No companion bills found.

Previously Filed As

IA SF550

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, modifying allocations of road use tax fund moneys, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(Formerly SSB 1125.)

IA HF153

A bill for an act creating a vacant school building demolition grant program and fund and making appropriations.(See HF 339, HF 706, HF 2541.)

IA HSB543

A bill for an act relating to state taxation and appropriations by combining special purpose funds, modifying individual income tax rates, placing assessment limitations for property tax purposes on commercial child care facilities, and modifying unemployment benefits, and including effective date and retroactive applicability provisions.

IA SSB3038

A bill for an act relating to state taxation and appropriations by combining special purpose funds, modifying individual income tax rates, placing assessment limitations for property tax purposes on commercial child care facilities, and modifying unemployment benefits, and including effective date and retroactive applicability provisions.(See SF 2398.)

IA SSB1125

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(See SF 550.)

IA SF2133

A bill for an act creating a jobs and infrastructure revolving fund and program administered by the Iowa finance authority, and making appropriations.(See SF 2413.)

IA HF339

A bill for an act creating a vacant school building demolition grant program and fund and making appropriations.(Formerly HF 153; See HF 706, HF 2541.)

IA HSB711

A bill for an act relating to the powers, duties, and responsibilities of state government entities associated with the budget, financial control, and information technology, making penalties applicable, and making appropriations.

IA SF2409

A bill for an act relating to the powers, duties, and responsibilities of state government entities associated with the budget, financial control, and information technology, making penalties applicable, and making appropriations.(Formerly SF 2375, SSB 3173.)

IA HSB695

A bill for an act relating to the powers, duties, and responsibilities of state government entities associated with the budget, financial control, and information technology, making penalties applicable, and making appropriations.(See HF 2622, HF 2708.)

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