IA
Iowa Senate Bill SSB1227

Iowa 2025-2026 Regular Session

Iowa Senate Bill SSB1227

Introduced
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.(See SF 651.)

Impact

The bill also introduces a homestead property tax exemption starting from January 1, 2025, replacing the previous homestead property tax credit, with a set exemption value of $50,000. This exemption is intended to ease the tax burden on homeowners, particularly benefiting vulnerable populations such as the elderly and disabled veterans, with provisions ensuring that existing beneficiaries retain their qualifications without needing to reapply.

Summary

Senate Study Bill 1227 proposes significant changes to local government property taxes, financial authority, and budgeting processes. One of its central elements is the shift from annual appropriations in the foundation base supplement fund to direct transfers for the Secure an Advanced Vision for Education fund, effective July 1, 2026. This change aims to streamline educational funding but has raised concerns among critics who fear it could limit financial resources for local school districts as funding mechanisms change.

Contention

Notably, the bill has engendered debate regarding its implications for local governments' financial autonomy. By modifying the maximum levy rates for property taxes and restricting cities and counties from using ad valorem tax levies to fund general operations, advocates argue that it clarifies and simplifies tax processes, potentially improving budget predictability. However, critics contend it hampers local control over important financial decisions, raising concerns about potentially adverse effects on local services and priorities.

Latest IA SSB1227 Activity

View All Events: IA 2025-2026 Regular Session SSB1227

Companion Bills

IA HSB328

Related 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.

Previously Filed As

IA SSB1124

A bill for an act relating to local government property taxes, financial authority, and budgets, and including effective date and applicability provisions.(See SF 356.)

IA SF356

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, and including effective date and applicability provisions.(Formerly SSB 1124.)

IA SSB1218

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions.(See SF 569.)

IA HF718

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, modifying certain bonding procedures, making penalties applicable, and including effective date, applicability, and retroactive applicability provisions. (Formerly HF 1.) Effective date: 05/04/2023, 07/01/2023, 07/01/2024. Applicability date: 01/01/2023, 07/01/2023, 07/01/2024.

IA SF569

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions. (Formerly SSB 1218.)

IA HF446

A bill for an act relating to property taxes by modifying the calculation of assessment limitations for certain property, providing a local government supplement, making appropriations, and including effective date and retroactive applicability provisions.

IA HSB224

A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(See HF 668.)

IA HF668

A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 224.)

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 HSB726

A bill for an act placing assessment limitations for property tax purposes on commercial child care facilities, and including effective date, applicability, and retroactive applicability provisions.(See HF 2655.)

Similar Bills

IA SF651

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.(Formerly SSB 1227.)

IA HSB328

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.

IA SSB1208

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.

IA HSB313

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.

IA HF446

A bill for an act relating to property taxes by modifying the calculation of assessment limitations for certain property, providing a local government supplement, making appropriations, and including effective date and retroactive applicability provisions.

IA SF181

A bill for an act relating to property taxes and income taxes by modifying the calculation of assessment limitations for certain property, amending provisions relating to certain tax withholding requirements and tax credits, and including effective date and retroactive applicability provisions. (Formerly SSB 1056.) Effective date: 02/20/2023. Applicability date: 01/01/2022, 01/01/2023.

IA SSB1056

A bill for an act relating to the calculation of assessment limitations for residential property and including effective date and retroactive applicability provisions.(See SF 181.)

IA HSB120

A bill for an act relating to the calculation of assessment limitations for residential property and including effective date and retroactive applicability provisions.