Iowa House Bill HSB328

Iowa 2025-2026 Regular Session

• Introduced: 4/9/25
• Refer: 4/9/25

Caption

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.

Impact

The anticipated effects of HSB328 on state laws include the modification of how property taxes are levied and budgeted at the county level. Specifically, the bill reduces the maximum levy rates for school districts and other local entities. This change aims to ensure a more consistent approach in tax levies, potentially safeguarding some resources while also limiting general budget flexibility for local governments. Additionally, the bill introduces a requirement for school districts to report unexpended fund balances, promoting more transparency and oversight in financial management.

Summary

House Study Bill 328 seeks to reform local government property tax regulations in Iowa, focusing specifically on property taxes, budgetary constraints, and financial authority of local governments. The bill proposes amendments to various codes that impact how property taxes are assessed and managed, particularly targeting the fiscal years from 2024 to 2028. Key provisions include eliminating certain tax appropriations and adjusting levy rates, which could collectively transform the fiscal landscape for many county and school district budgets.

Contention

However, HSB328 has faced notable opposition from local government advocates who express concern that the bill's restrictions may hinder local governments' ability to respond effectively to community needs. Critics argue that the proposed financial limitations could disproportionately affect areas with lower economic resources, preventing them from adequately funding essential services. The challenge lies in balancing state-wide standards with local control, a point that has spurred debate among legislators, local council members, and advocacy groups.