Iowa Senate Bill SSB1227 Latest Draft

                            Senate Study Bill 1227 - Introduced   SENATE FILE _____   BY (PROPOSED COMMITTEE ON   WAYS AND MEANS BILL BY   CHAIRPERSON DAWSON)   A BILL FOR   An Act relating to local government property taxes, financial 1   authority, and budgets, modifying appropriations, and 2   including effective date, applicability, and retroactive 3   applicability provisions. 4   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5   TLSB 2982XC (4) 91   jm/md  

  S.F. _____   DIVISION I 1   COUNTY PROPERTY TAXES AND BUDGETS 2   Section 1. Section 331.423, subsection 1, paragraph b, 3   subparagraph (1), Code 2025, is amended to read as follows: 4   (1) For each fiscal year beginning on or after July 1, 5   2024, but before July 1, 2028   2026 , subject to subparagraph 6   (3), the greater of three dollars and fifty cents per thousand 7   dollars of assessed value used to calculate taxes for general 8   county services for the budget year and the adjusted general 9   county basic levy rate, as adjusted under subparagraph (2), if 10   applicable. 11   Sec. 2. Section 331.423, subsection 1, paragraph c, Code 12   2025, is amended to read as follows: 13   c. For each fiscal year beginning on or after July 1, 2028,   14   three dollars and fifty cents per thousand dollars of assessed 15   value. For the fiscal year beginning July 1, 2026, the greater 16   of: 17   (1)   A levy rate per one thousand dollars of assessed value 18   equal to one thousand multiplied by the quotient of one hundred   19   two percent of the current fiscal years actual property tax 20   dollars certified for levy under this subsection 1 divided by   21   the remainder of the total assessed value used to calculate 22   such taxes for the budget year minus value attributable to new   23   valuation. 24   (2) A levy rate per one thousand dollars of assessed value 25   that results in an amount of actual property tax dollars 26   certified for levy under this subsection 1 equal to one 27   hundred and one-half percent of the actual property tax dollars   28   certified for levy under this subsection 1 for the current 29   fiscal year.   30   Sec. 3. Section 331.423, subsection 1, Code 2025, is amended   31   by adding the following new paragraph: 32   NEW PARAGRAPH   . d. (1) For each fiscal year beginning 33   on or after July 1, 2027, the levy rate imposed under this 34   subsection 1 for the current fiscal year, unless subject to 35   -1-   LSB 2982XC (4) 91   jm/md   1/ 76                           

  S.F. _____   subparagraph (2), and for the budget year beginning July 1, 1   2027, only, not less than a levy rate per one thousand dollars 2   of assessed value that results in an amount of actual property 3   tax dollars certified for levy under this subsection 1 equal 4   to one hundred and one-half percent of the actual property tax 5   dollars certified for levy under this subsection 1 for the 6   current fiscal year. 7   (2) (a) If the total assessed value, excluding value 8   attributable to new valuation, used to calculate taxes for 9   general county services under this subsection 1 for the budget 10   year is equal to or exceeds one hundred two percent of the 11   total assessed value used to calculate taxes for general 12   county services for the current fiscal year, the levy rate 13   imposed under this subsection 1 shall not exceed a levy rate 14   per one thousand dollars of assessed value that is equal to 15   one thousand multiplied by the quotient obtained by dividing 16   the product of the budget adjustment factor multiplied by the 17   current fiscal years actual property tax dollars certified 18   for levy under this subsection 1 by the remainder of the total 19   assessed value used to calculate such taxes for the budget year 20   minus value attributable to new valuation. 21   (b) For purposes of this subparagraph, budget adjustment 22   factor is equal to one of the following: 23   (i) If the change in the consumer price index for all urban 24   consumers for the twelve-month period ending six months prior 25   to the beginning of the applicable budget year is less than 26   four percent, one hundred two percent. 27   (ii) If the change in the consumer price index for all 28   urban consumers for the twelve-month period ending six months 29   prior to the beginning of the applicable budget year is equal 30   to or greater than four percent but less than six percent, one 31   hundred three percent. 32   (iii) If the change in the consumer price index for all 33   urban consumers for the twelve-month period ending six months 34   prior to the beginning of the applicable budget year is equal 35   -2-   LSB 2982XC (4) 91   jm/md   2/ 76  

  S.F. _____   to or greater than six percent but less than eight percent, one 1   hundred four percent. 2   (iv) If the change in the consumer price index for all urban 3   consumers for the twelve-month period ending six months prior 4   to the beginning of the applicable budget year is equal to or 5   greater than eight percent, one hundred five percent. 6   Sec. 4. Section 331.423, subsection 2, paragraph b, 7   subparagraph (1), Code 2025, is amended to read as follows: 8   (1) For each fiscal year beginning on or after July 1, 2024, 9   but before July 1, 2028   2026 , subject to subparagraph (3), the 10   greater of three dollars and ninety-five cents per thousand 11   dollars of assessed value used to calculate taxes for rural 12   county services for the budget year and the adjusted rural 13   county basic levy rate, as adjusted under subparagraph (2), if 14   applicable. 15   Sec. 5. Section 331.423, subsection 2, paragraph c, Code 16   2025, is amended to read as follows: 17   c. For each fiscal year beginning on or after July 1, 2028,   18   three dollars and ninety-five cents per thousand dollars of   19   assessed value. For the fiscal year beginning July 1, 2026, 20   the greater of:   21   (1) A levy rate per one thousand dollars of assessed value 22   equal to one thousand multiplied by the quotient of one hundred   23   two percent of the current fiscal years actual property tax 24   dollars certified for levy under this subsection 2 divided by 25   the remainder of the total assessed value used to calculate 26   such taxes for the budget year minus value attributable to new 27   valuation. 28   (2)   A levy rate per one thousand dollars of assessed value 29   that results in an amount of actual property tax dollars   30   certified for levy under this subsection 2 equal to one 31   hundred and one-half percent of the actual property tax dollars   32   certified for levy under this subsection 2 for the current 33   fiscal year.   34   Sec. 6. Section 331.423, subsection 2, Code 2025, is amended   35   -3-   LSB 2982XC (4) 91   jm/md   3/ 76                          

  S.F. _____   by adding the following new paragraph: 1   NEW PARAGRAPH   . d. (1) For each fiscal year beginning 2   on or after July 1, 2027, the levy rate imposed under this 3   subsection 2 for the current fiscal year, unless subject to 4   subparagraph (2), and for the budget year beginning July 1, 5   2027, only, not less than a levy rate per one thousand dollars 6   of assessed value that results in an amount of actual property 7   tax dollars certified for levy under this subsection 2 equal 8   to one hundred and one-half percent of the actual property tax 9   dollars certified for levy under this subsection 2 for the 10   current fiscal year. 11   (2) (a) If the total assessed value, excluding value 12   attributable to new valuation, used to calculate taxes for 13   rural county services under this subsection 2 for the budget 14   year is equal to or exceeds one hundred two percent of the 15   total assessed value used to calculate taxes for rural county 16   services for the current fiscal year, the levy rate imposed 17   under this subsection 2 shall not exceed a levy rate per 18   one thousand dollars of assessed value that is equal to one 19   thousand multiplied by the quotient obtained by dividing the 20   product of the budget adjustment factor multiplied by the 21   current fiscal years actual property tax dollars certified 22   for levy under this subsection 2 by the remainder of the total 23   assessed value used to calculate such taxes for the budget year 24   minus value attributable to new valuation. 25   (b) For purposes of this subparagraph, budget adjustment 26   factor is equal to one of the following: 27   (i) If the change in the consumer price index for all urban 28   consumers for the twelve-month period ending six months prior 29   to the beginning of the applicable budget year is less than 30   four percent, one hundred two percent. 31   (ii) If the change in the consumer price index for all 32   urban consumers for the twelve-month period ending six months 33   prior to the beginning of the applicable budget year is equal 34   to or greater than four percent but less than six percent, one 35   -4-   LSB 2982XC (4) 91   jm/md   4/ 76   

  S.F. _____   hundred three percent. 1   (iii) If the change in the consumer price index for all 2   urban consumers for the twelve-month period ending six months 3   prior to the beginning of the applicable budget year is equal 4   to or greater than six percent but less than eight percent, one 5   hundred four percent. 6   (iv) If the change in the consumer price index for all urban 7   consumers for the twelve-month period ending six months prior 8   to the beginning of the applicable budget year is equal to or 9   greater than eight percent, one hundred five percent. 10   Sec. 7. Section 331.423, subsection 3, Code 2025, is amended 11   by adding the following new paragraph: 12   NEW PARAGRAPH   . c. New valuation means the increase from 13   the current fiscal year to the budget year in taxable valuation 14   due to the following, the amount of each as certified by the 15   county auditor to the department of management: 16   (1) New construction. 17   (2) Additions or improvements to existing structures that 18   are not normal and necessary repairs under section 441.21, 19   subsection 8. 20   (3) Net boundary adjustments, including annexation, 21   severance, incorporation, consolidation, or discontinuance as 22   those terms are defined in section 368.1. 23   Sec. 8. EFFECTIVE DATE. This division of this Act takes 24   effect January 1, 2026. 25   Sec. 9. APPLICABILITY. This division of this Act applies 26   to property taxes and budgets for fiscal years beginning on or 27   after July 1, 2026. 28   DIVISION II   29   CITY PROPERTY TAXES AND BUDGETS   30   Sec. 10. Section 384.1, subsection 3, paragraph c, 31   subparagraph (1), Code 2025, is amended to read as follows: 32   (1) For each fiscal year beginning on or after July 1, 33   2024, but before July 1, 2028   2026 , subject to subparagraph 34   (3), a citys tax levy for the general fund, except for levies 35   -5-   LSB 2982XC (4) 91   jm/md   5/ 76     

  S.F. _____   authorized in section 384.12 , shall not exceed in any tax year 1   the greater of eight dollars and ten cents per thousand dollars 2   of assessed value used to calculate taxes for the budget year 3   and the adjusted city general fund levy rate, as adjusted under 4   subparagraph (2), if applicable. 5   Sec. 11. Section 384.1, subsection 3, paragraph d, Code 6   2025, is amended to read as follows: 7   d. (1)   For each fiscal year beginning on or after July 1, 8   2028, a citys tax levy rate for the general fund, except for   9   levies authorized in section 384.12 , shall not exceed eight 10   dollars and ten cents per thousand dollars of assessed value   11   used to calculate taxes in any fiscal year. For the fiscal 12   year beginning July 1, 2026, a citys tax levy rate for the 13   general fund, except for levies authorized in section 384.12,   14   shall not exceed the greater of: 15   (a) A levy rate per one thousand dollars of assessed value 16   equal to one thousand multiplied by the quotient of one hundred 17   two percent of the current fiscal years actual property tax   18   dollars certified for levy under this subsection divided by   19   the remainder of the total assessed value used to calculate 20   such taxes for the budget year minus value attributable to new   21   valuation. 22   (b)   A levy rate per one thousand dollars of assessed value 23   that results in an amount of actual property tax dollars 24   certified for levy under this subsection equal to one hundred 25   and one-half percent of the actual property tax dollars 26   certified for levy under this subsection for the current fiscal 27   year. 28   (2) Notwithstanding other provisions of this paragraph, 29   if a citys actual levy rate for the current fiscal year is   30   zero dollars per one thousand dollars of assessed value, a levy   31   rate per one thousand dollars of assessed value equal to one   32   thousand multiplied by the quotient of one hundred two percent 33   of the citys certified general fund budget for the current   34   fiscal year divided by the remainder of the total assessed 35   -6-   LSB 2982XC (4) 91   jm/md   6/ 76                                        

  S.F. _____   value used to calculate taxes for the budget year minus value 1   attributable to new valuation.   2   Sec. 12. Section 384.1, subsection 3, Code 2025, is amended 3   by adding the following new paragraph: 4   NEW PARAGRAPH   . e. (1) For each fiscal year beginning on 5   or after July 1, 2027, a citys tax levy rate for the general 6   fund, except for levies authorized in section 384.12, shall 7   not exceed the levy rate imposed under this subsection for the 8   current fiscal year, unless subject to subparagraph (2), and 9   for the budget year beginning July 1, 2027, only, not less than 10   a levy rate per one thousand dollars of assessed value that 11   results in an amount of actual property tax dollars certified 12   for levy under this subsection equal to one hundred and 13   one-half percent of the actual property tax dollars certified 14   for levy under this subsection for the current fiscal year. 15   (2) (a) If the total assessed value, excluding value 16   attributable to new valuation, used to calculate taxes under 17   this subsection for the budget year is equal to or exceeds 18   one hundred two percent of the total assessed value used to 19   calculate taxes under this subsection for the current fiscal 20   year, the citys levy rate under this subsection shall not 21   exceed a levy rate per one thousand dollars of assessed value 22   that is equal to one thousand multiplied by the quotient 23   obtained by dividing the product of the budget adjustment 24   factor multiplied by the current fiscal years actual property 25   tax dollars certified for levy under this subsection by the 26   remainder of the total assessed value used to calculate such   27   taxes for the budget year minus value attributable to new 28   valuation.   29   (b) For purposes of this subparagraph, budget adjustment 30   factor is equal to one of the following: 31   (i) If the change in the consumer price index for all urban 32   consumers for the twelve-month period ending six months prior 33   to the beginning of the applicable budget year is less than 34   four percent, one hundred two percent. 35   -7-   LSB 2982XC (4) 91   jm/md   7/ 76     

  S.F. _____   (ii) If the change in the consumer price index for all 1   urban consumers for the twelve-month period ending six months 2   prior to the beginning of the applicable budget year is equal 3   to or greater than four percent but less than six percent, one 4   hundred three percent. 5   (iii) If the change in the consumer price index for all 6   urban consumers for the twelve-month period ending six months 7   prior to the beginning of the applicable budget year is equal 8   to or greater than six percent but less than eight percent, one 9   hundred four percent. 10   (iv) If the change in the consumer price index for all urban 11   consumers for the twelve-month period ending six months prior 12   to the beginning of the applicable budget year is equal to or 13   greater than eight percent, one hundred five percent. 14   (3) Notwithstanding other provisions of this paragraph, 15   if a citys actual levy rate for the current fiscal year is 16   zero dollars per one thousand dollars of assessed value, the 17   citys levy rate under this subsection shall not exceed a levy 18   rate per one thousand dollars of assessed value equal to one 19   thousand multiplied by the quotient of one hundred two percent 20   of the citys certified general fund budget for the current 21   fiscal year divided by the remainder of the total assessed 22   value used to calculate taxes for the budget year minus value 23   attributable to new valuation. 24   Sec. 13. Section 384.1, subsection 4, Code 2025, is amended 25   by adding the following new paragraph: 26   NEW PARAGRAPH   . c. New valuation means the increase from   27   the current fiscal year to the budget year in taxable valuation 28   due to the following, the amount of each as certified by the 29   county auditor to the department of management: 30   (1) New construction. 31   (2) Additions or improvements to existing structures that 32   are not normal and necessary repairs under section 441.21, 33   subsection 8. 34   (3) Net boundary adjustments, including annexation, 35   -8-   LSB 2982XC (4) 91   jm/md   8/ 76   

  S.F. _____   severance, incorporation, consolidation, or discontinuance as 1   those terms are defined in section 368.1. 2   Sec. 14. EFFECTIVE DATE. This division of this Act takes 3   effect January 1, 2026. 4   Sec. 15. APPLICABILITY. This division of this Act applies 5   to property taxes and budgets for fiscal years beginning on or 6   after July 1, 2026. 7   DIVISION III 8   SCHOOL TAXES AND BUDGETS 9   Sec. 16. Section 257.1, subsection 2, paragraph b, Code 10   2025, is amended to read as follows: 11   b. (1)   (a) For the budget year commencing July 1, 1999, 12   and for each succeeding budget year beginning before July 13   1, 2022, the regular program foundation base per pupil is 14   eighty-seven and five-tenths percent of the regular program 15   state cost per pupil. 16   (b)   For the budget year commencing July 1, 2022, and for 17   each succeeding budget year beginning before July 1, 2026   , 18   the regular program foundation base per pupil is eighty-eight 19   and four-tenths percent of the regular program state cost per 20   pupil. 21   (c)   For the budget year commencing July 1, 2026, and each 22   succeeding budget year, the regular program foundation base per   23   pupil is one hundred percent of the regular program state cost 24   per pupil. 25   (2) (a) For the budget year commencing July 1, 1991, and 26   for each succeeding budget year beginning before July 1, 2026, 27   the special education support services foundation base is 28   seventy-nine percent of the special education support services 29   state cost per pupil. 30   (b)   For the budget year commencing July 1, 2026, and each 31   succeeding budget year, the special education support services   32   foundation base is one hundred percent of the special education 33   support services state cost per pupil.   34   (3) The combined foundation base is the sum of the regular 35   -9-   LSB 2982XC (4) 91   jm/md   9/ 76                        

  S.F. _____   program foundation base, the special education support services 1   foundation base, the total teacher salary supplement district 2   cost, the total professional development supplement district 3   cost, the total early intervention supplement district cost, 4   the total teacher leadership supplement district cost, and the 5   total area education agency teacher salary supplement district 6   cost , and the amounts added to the combined district cost of   7   the school district for media services and educational services 8   under section 257.37   . 9   Sec. 17. Section 257.3, subsection 1, paragraph a, Code 10   2025, is amended to read as follows: 11   a. (1)   Except as provided in subsections 2 and 3 , a school 12   district shall cause to be levied each budget year beginning 13   before July 1, 2026   , for the school general fund, a foundation 14   property tax equal to five dollars and forty cents per thousand 15   dollars of assessed valuation on all taxable property in the 16   district. The county auditor shall spread the foundation levy 17   over all taxable property in the district. 18   (2)   Except as provided in subsections 2 and 3, a school 19   district shall cause to be levied for the budget year beginning 20   July 1, 2026, and each succeeding budget year, for the school   21   general fund, a foundation property tax equal to two dollars 22   and ninety-seven cents per thousand dollars of assessed   23   valuation on all taxable property in the district. The county 24   auditor shall spread the foundation levy over all taxable 25   property in the district. 26   Sec. 18. Section 257.3, subsection 2, paragraphs a and b, 27   Code 2025, are amended to read as follows: 28   a. Notwithstanding subsection 1 , a reorganized school 29   district for which the reorganization takes effect on or after   30   July 1, 2026, shall cause a foundation property tax of four 31   two   dollars and forty forty-two cents per thousand dollars of 32   assessed valuation to be levied on all taxable property which, 33   in the year preceding a reorganization, was within a school 34   district affected by the reorganization as defined in section 35   -10-   LSB 2982XC (4) 91   jm/md   10/ 76                          

  S.F. _____   275.1 , or in the year preceding a dissolution was a part of a 1   school district that dissolved if the dissolution proposal has 2   been approved by the director of the department of education 3   pursuant to section 275.55 . 4   b. In For a reorganized school district for which the 5   reorganization took effect on or after July 1, 2026, in   6   succeeding school years, the foundation property tax levy on 7   that portion shall be increased to the rate of four two dollars 8   and ninety   sixty-nine cents per thousand dollars of assessed 9   valuation the first succeeding year, five two dollars and 10   fifteen   eighty-three cents per thousand dollars of assessed 11   valuation the second succeeding year, and five two dollars 12   and forty ninety-seven cents per thousand dollars of assessed 13   valuation the third succeeding year and each year thereafter 14   under subsection 1, paragraph   a  . 15   Sec. 19. Section 257.4, subsection 1, paragraph a, Code 16   2025, is amended by adding the following new subparagraphs: 17   NEW SUBPARAGRAPH   . (10) The amount added to the combined 18   district cost of the school district for media services under 19   section 257.37. 20   NEW SUBPARAGRAPH   . (11) The amount added to the combined 21   district cost of the school district for educational services 22   under section 257.37. 23   Sec. 20. Section 257.4, subsection 2, Code 2025, is amended 24   by adding the following new paragraph: 25   NEW PARAGRAPH   . c. This subsection applies to budget years 26   beginning before July 1, 2026. 27   Sec. 21. Section 257.15, subsections 2 and 3, Code 2025, are   28   amended to read as follows: 29   2. Property tax adjustment aid for 1992-1993 and succeeding 30   years beginning before 2026-2027   . For the budget year beginning 31   July 1, 1992, and succeeding budget years beginning before July   32   1, 2026 , the department of education shall pay property tax 33   adjustment aid to a school district equal to the amount paid 34   to the district for the base year less an amount equal to the 35   -11-   LSB 2982XC (4) 91   jm/md   11/ 76                          

  S.F. _____   product of the percent by which the taxable valuation in the 1   district increased, if the taxable valuation increased, from 2   January 1 of the year prior to the base year to January 1 of the 3   base year and the property tax adjustment aid. The department 4   of management shall adjust the rate of the additional property 5   tax accordingly and notify the department of education of 6   the amount of aid to be paid to each district from moneys 7   appropriated for property tax adjustment aid. 8   3. Property tax adjustment aid appropriation. There 9   is appropriated from the general fund of the state to the 10   department of education, for each fiscal year beginning   11   before July 1, 2026 , an amount necessary to pay property 12   tax adjustment aid to school districts under this section . 13   Property tax adjustment aid shall be paid to school districts 14   in the manner provided in section 257.16 . 15   Sec. 22. Section 257.15, subsection 4, paragraph a, 16   subparagraph (1), subparagraph division (d), Code 2025, is 17   amended to read as follows: 18   (d) For the budget year beginning July 1, 2009, and 19   succeeding budget years beginning before July 1, 2026   , 20   twenty-four million dollars. 21   Sec. 23. Section 257.15, subsection 4, paragraph b, Code 22   2025, is amended to read as follows: 23   b. After   For fiscal years beginning before July 1, 2025, 24   after lowering all school district adjusted additional property 25   tax levy rates to the statewide maximum adjusted additional 26   property tax levy rate under paragraph a , the department of 27   management shall use any remaining funds at the end of the 28   calendar year to further lower additional property taxes by 29   increasing for the budget year beginning the following July 30   1, the regular program foundation base per pupil percentage 31   under section 257.1 . Moneys used pursuant to this paragraph 32   shall supplant an equal amount of the appropriation made from 33   the general fund of the state pursuant to section 257.16 that 34   represents the increase in state foundation aid. Any moneys   35   -12-   LSB 2982XC (4) 91   jm/md   12/ 76         

  S.F. _____   remaining at the conclusion of the fiscal year beginning July 1   1, 2024, shall be transferred by the department of management   2   for deposit in the general fund of the state. 3   Sec. 24. Section 257.16A, subsections 2 and 3, Code 2025, 4   are amended to read as follows: 5   2. There For each fiscal year beginning before July 1, 6   2026, there is appropriated annually all moneys in the fund to 7   the department of management for purposes of section 257.15, 8   subsection 4 . 9   3. Notwithstanding section 8.33 , any moneys remaining in 10   the property tax equity and relief fund at the end of a fiscal 11   year shall not revert to any other fund but shall remain in the 12   property tax equity and relief fund for use as provided in this 13   section for the following fiscal year. However, at the end of   14   the fiscal year beginning July 1, 2025, any moneys remaining in 15   the property tax equity and relief fund shall be transferred 16   for deposit into either the secure an advanced vision for 17   education fund or the general fund of the state based on the   18   fund from which the moneys were received.   19   Sec. 25. Section 257.16B, subsection 1, Code 2025, is 20   amended to read as follows: 21   1. For each fiscal year beginning on or after July 1, 2022, 22   but before July 1, 2026,   there is appropriated from the general 23   fund of the state to the department of education an amount 24   necessary to make all school district property tax replacement 25   payments under this section , as calculated in subsection 2 . 26   Sec. 26. Section 257.16D, subsection 2, paragraph a, Code 27   2025, is amended to read as follows:   28   a. There   For fiscal years beginning before July 1, 2026, 29   there   is appropriated annually from the fund to the department 30   of management an amount necessary to make all foundation base 31   supplement payments under this section . The department of 32   management shall calculate each school districts foundation 33   base supplement payment based on the distribution methodology 34   under paragraph b . 35   -13-   LSB 2982XC (4) 91   jm/md   13/ 76                  

  S.F. _____   Sec. 27. Section 257.16D, subsection 3, Code 2025, is 1   amended to read as follows: 2   3. Notwithstanding section 8.33 , any moneys remaining in 3   the foundation base supplement fund at the end of a fiscal year 4   shall not revert to any other fund but shall remain in the 5   foundation base supplement fund for use as provided in this 6   section for the following fiscal year. However, at the end of   7   the fiscal year beginning July 1, 2025, any moneys remaining in 8   the foundation base supplement fund shall be transferred for   9   deposit in the secure an advanced vision for education fund. 10   Sec. 28. Section 257.31, Code 2025, is amended by adding the 11   following new subsection: 12   NEW SUBSECTION   . 19. a. The board of directors of each 13   school district with an unexpended fund balance in the 14   districts management levy fund under section 298A.3 at the 15   conclusion of the fiscal year beginning July 1, 2024, that 16   exceeds an amount equal to the total expenditures from the 17   districts management levy fund for the fiscal year beginning 18   July 1, 2024, shall certify such unexpended fund balance and 19   expenditure amounts, including any reserved or designated 20   amounts in the fund and the purposes therefor, to the school 21   budget review committee by November 15, 2025. The committee 22   shall prescribe the form for such certifications. 23   b. The committee shall conduct a review of the unexpended 24   fund balances and expenditures of school district management 25   levy funds certified under paragraph a . The committee 26   shall consult with boards of directors of school districts   27   and other relevant persons to determine the appropriateness 28   of establishing district management levy fund unexpended fund 29   balance limitations. By February 1, 2026, the committee 30   shall make recommendations to the general assembly for 31   establishing district management levy fund unexpended fund 32   balance limitations for fiscal years beginning on or after July 33   1, 2027, including recommendations for limitations based on a 34   percentage of the districts management levy fund expenditures 35   -14-   LSB 2982XC (4) 91   jm/md   14/ 76       

  S.F. _____   and recommendations for management levy limitations and 1   expenditure requirements for excess funds. 2   Sec. 29. Section 298.2, subsection 1, Code 2025, is amended 3   to read as follows: 4   1. a. A physical plant and equipment levy of not exceeding 5   one dollar and sixty-seven   eighty-three and one-half cents 6   per thousand dollars of assessed valuation in the district is 7   established except as otherwise provided in this subsection . 8   The physical plant and equipment levy consists of the regular 9   physical plant and equipment levy of not exceeding thirty-three   10   sixteen and one-half   cents per thousand dollars of assessed 11   valuation in the district and a voter-approved physical plant 12   and equipment levy of not exceeding one dollar and thirty-four 13   sixty-seven   cents per thousand dollars of assessed valuation 14   in the district. However, the voter-approved physical plant 15   and equipment levy may consist of a combination of a physical 16   plant and equipment property tax levy and a physical plant and 17   equipment income surtax as provided in subsection 4 with the 18   maximum amount levied and imposed limited to an amount that 19   could be raised by a one dollar and thirty-four   sixty-seven 20   cent property tax levy. A voter-approved physical plant and   21   equipment levy approved prior to the effective date of this 22   division of this Act are subject to the rate limitations of   23   this paragraph. 24   b. For school budget years beginning on or after July 1, 25   2015 2026 , a school district may by resolution of the board of 26   directors adopted prior to April 30 preceding the budget year 27   impose a physical plant and equipment levy at a rate in excess 28   of the levy rate limitations under paragraph a if the board 29   has refunded or refinanced a loan agreement entered into under 30   section 297.36 and such refunding or refinancing complies with 31   the maturity period authorized under section 297.36, subsection 32   1 , paragraph c , and results in a lower amount of interest on 33   the amount of the loan agreement. However, the rate imposed 34   by a school district under this paragraph shall not exceed the 35   -15-   LSB 2982XC (4) 91   jm/md   15/ 76                

  S.F. _____   rate imposed during the budget year in which the loan agreement 1   was refunded or refinanced or fifty percent of such levy rate   2   if the refunding or refinancing occurred in the budget year 3   beginning July 1, 2025 . Authorization to exceed the levy 4   rate limitations of paragraph a shall terminate upon the 5   maturity of the loan agreement after refunding or refinancing. 6   Upon adoption of the resolution under this paragraph b , the 7   board shall comply with the requirements of section 297.36, 8   subsection 1 , paragraph b . 9   Sec. 30. Section 298.2, subsection 2, Code 2025, is amended 10   by striking the subsection. 11   Sec. 31. Section 298.4, subsection 1, unnumbered paragraph 12   1, Code 2025, is amended to read as follows: 13   The   Unless prohibited by subsection 1A, paragraph a , the 14   board of directors of a school district may certify for levy by 15   April 30 of a school year, a tax on all taxable property in the 16   school district for a district management levy , subject to the 17   limitations in subsection 1A, paragraph   b . The revenue from 18   the tax levied in this section shall be placed in the district 19   management levy fund of the school district. The district 20   management levy shall be expended only for the following 21   purposes: 22   Sec. 32. Section 298.4, Code 2025, is amended by adding the 23   following new subsection: 24   NEW SUBSECTION   . 1A. a. (1) For the fiscal year beginning 25   July 1, 2027, if a school districts unexpended fund balance, 26   as defined in section 257.2, of the districts management levy 27   fund is equal to or exceeds one hundred eighty percent of the 28   average annual expenditures from the districts management 29   levy fund for the three consecutive fiscal years immediately 30   preceding the base year, the board of directors shall not 31   certify a levy under this section for the fiscal year. 32   (2) For the fiscal year beginning July 1, 2028, if a school 33   districts unexpended fund balance, as defined in section 34   257.2, of the districts management levy fund is equal to or 35   -16-   LSB 2982XC (4) 91   jm/md   16/ 76             

  S.F. _____   exceeds one hundred seventy-five percent of the average annual 1   expenditures from the districts management levy fund for the 2   three consecutive fiscal years immediately preceding the base 3   year, the board of directors shall not certify a levy under 4   this section for the fiscal year. 5   (3) For the fiscal year beginning July 1, 2029, if a school 6   districts unexpended fund balance, as defined in section 7   257.2, of the districts management levy fund is equal to or 8   exceeds one hundred seventy percent of the average annual 9   expenditures from the districts management levy fund for the 10   three consecutive fiscal years immediately preceding the base 11   year, the board of directors shall not certify a levy under 12   this section for the fiscal year. 13   (4) For the fiscal year beginning July 1, 2030, if a school 14   districts unexpended fund balance, as defined in section 15   257.2, of the districts management levy fund is equal to or 16   exceeds one hundred sixty-five percent of the average annual 17   expenditures from the districts management levy fund for the 18   three consecutive fiscal years immediately preceding the base 19   year, the board of directors shall not certify a levy under 20   this section for the fiscal year. 21   (5) For the fiscal year beginning July 1, 2031, and each 22   succeeding fiscal year, if a school districts unexpended 23   fund balance, as defined in section 257.2, of the districts 24   management levy fund is equal to or exceeds one hundred sixty 25   percent of the average annual expenditures from the districts 26   management levy fund for the three consecutive fiscal years 27   immediately preceding the base year, the board of directors 28   shall not certify a levy under this section for the fiscal 29   year. 30   b. (1) For the fiscal year beginning July 1, 2027, if 31   a school district is not prohibited from certifying a levy 32   pursuant to paragraph a , the maximum amount that the board of 33   directors may certify for levy under this section shall be an 34   amount equal to the remainder of one hundred eighty percent of 35   -17-   LSB 2982XC (4) 91   jm/md   17/ 76  

  S.F. _____   the average annual expenditures from the districts management 1   levy fund for the three consecutive fiscal years immediately 2   preceding the base year minus the districts management levy 3   fund unexpended fund balance for the fiscal year preceding the 4   base year. 5   (2) For the fiscal year beginning July 1, 2028, if a school 6   district is not prohibited from certifying a levy pursuant to 7   paragraph a , the maximum amount that the board of directors 8   may certify for levy under this section shall be an amount 9   equal to the remainder of one hundred seventy-five percent of 10   the average annual expenditures from the districts management 11   levy fund for the three consecutive fiscal years immediately 12   preceding the base year minus the districts management levy 13   fund unexpended fund balance for the fiscal year preceding the 14   base year. 15   (3) For the fiscal year beginning July 1, 2029, if a school 16   district is not prohibited from certifying a levy pursuant to 17   paragraph a , the maximum amount that the board of directors 18   may certify for levy under this section shall be an amount 19   equal to the remainder of one hundred seventy percent of the 20   average annual expenditures from the districts management 21   levy fund for the three consecutive fiscal years immediately 22   preceding the base year minus the districts management levy 23   fund unexpended fund balance for the fiscal year preceding the 24   base year. 25   (4) For the fiscal year beginning July 1, 2030, if a school 26   district is not prohibited from certifying a levy pursuant to 27   paragraph a , the maximum amount that the board of directors 28   may certify for levy under this section shall be an amount 29   equal to the remainder of one hundred sixty-five percent of 30   the average annual expenditures from the districts management 31   levy fund for the three consecutive fiscal years immediately 32   preceding the base year minus the districts management levy 33   fund unexpended fund balance for the fiscal year preceding the 34   base year. 35   -18-   LSB 2982XC (4) 91   jm/md   18/ 76  

  S.F. _____   (5) For the fiscal year beginning July 1, 2031, and each 1   succeeding fiscal year, if a school district is not prohibited 2   from certifying a levy pursuant to paragraph a , the maximum 3   amount that the board of directors may certify for levy under 4   this section shall be an amount equal to the remainder of one 5   hundred sixty percent of the average annual expenditures from 6   the districts management levy fund for the three consecutive 7   fiscal years immediately preceding the base year minus the 8   districts management levy fund unexpended fund balance for the 9   fiscal year preceding the base year. 10   Sec. 33. Section 298.18, subsection 1, paragraph d, Code 11   2025, is amended to read as follows: 12   d. The amount estimated and certified to apply on principal 13   and interest for any one year may exceed two dollars and   14   seventy one dollar and thirty-five cents per thousand dollars 15   of assessed value by the amount approved by the voters of the 16   school corporation, but not exceeding four two dollars and five 17   two and one-half   cents per thousand dollars of the assessed 18   value of the taxable property within any school corporation, 19   provided that the registered voters of such school corporation 20   have first approved such increased amount at an election held 21   on a date specified in section 39.2, subsection 4 , paragraph 22   c . Amounts approved at election before the effective date   23   of this division of this Act are subject to the levy rate 24   limitations of this paragraph. 25   Sec. 34. Section 423F.2, subsection 3, paragraph b, 26   subparagraph (2), Code 2025, is amended to read as follows: 27   (2) For purposes of this subsection , the equity transfer 28   amount for fiscal years beginning before July 1, 2026, is 29   determined by multiplying the equity transfer percentage by the 30   amount of moneys available in the secure an advanced vision for 31   education fund in the fiscal year. For fiscal years beginning   32   on or after July 1, 2026, the equity transfer amount is zero. 33   (a) For the fiscal year beginning July 1, 2018, the equity 34   transfer percentage is two and one-tenth percent. For the 35   -19-   LSB 2982XC (4) 91   jm/md   19/ 76               

  S.F. _____   fiscal year beginning July 1, 2019, the equity transfer 1   percentage is three and one-tenth percent. 2   (b) For each fiscal year beginning on or after July 1, 3   2020, but before July 1, 2026,   the equity transfer percentage 4   is equal to the equity transfer percentage for the immediately 5   preceding fiscal year, unless the amount of moneys available 6   in the secure an advanced vision for education fund in the 7   immediately preceding fiscal year equals or exceeds one hundred 8   two percent of the amount of moneys available in the fund for 9   the fiscal year prior to the immediately preceding fiscal year, 10   in which case the equity transfer percentage shall be the 11   equity transfer percentage for the immediately preceding fiscal 12   year plus one percent subject to the limitation in subparagraph 13   division (c). 14   (c) If the equity transfer percentage calculated under 15   subparagraph division (b) exceeds thirty percent, the equity 16   transfer percentage for that fiscal year shall be thirty 17   percent. 18   Sec. 35. Section 423F.2, subsection 3, paragraph b, 19   subparagraph (3), unnumbered paragraph 1, Code 2025, is amended 20   to read as follows: 21   For purposes of this subsection , the foundation base 22   transfer amount for the fiscal year beginning July 1, 2019, is 23   zero, and for each fiscal year beginning on or after July 1, 24   2020, but before July 1, 2026,   the foundation base transfer 25   amount equals the equity transfer amount for the fiscal year 26   under subparagraph (2) minus the sum of the following: 27   Sec. 36. Section 423F.2, subsection 3, paragraph b, Code 28   2025, is amended by adding the following new subparagraph: 29   NEW SUBPARAGRAPH   . (04) For purposes of this subsection, the 30   foundation base transfer amount for each fiscal year beginning 31   on or after July 1, 2026, is zero. 32   Sec. 37. Section 423F.3, subsection 1, paragraph a, Code 33   2025, is amended to read as follows:   34   a. Reduction of the   bond levies levy under sections section 35   -20-   LSB 2982XC (4) 91   jm/md   20/ 76          

  S.F. _____   298.18 and 298.18A and all other debt levies. 1   Sec. 38. Section 425A.3, subsection 1, Code 2025, is amended 2   to read as follows: 3   1. The family farm tax credit fund shall be apportioned 4   each year in the manner provided in this chapter so as to give 5   a credit against the tax on each eligible tract of agricultural 6   land within the several school districts of the state in which 7   the levy for the general school fund exceeds five dollars and   8   forty cents per thousand dollars of assessed value   the levy 9   rate under section 257.3, subsection 1, paragraph a . The 10   amount of the credit on each eligible tract of agricultural 11   land shall be the amount the tax levied for the general school 12   fund exceeds the amount of tax which would be levied on each 13   eligible tract of agricultural land were the levy for the 14   general school fund five dollars and forty cents per thousand   15   dollars of assessed value the levy rate under section 257.3, 16   subsection 1, paragraph a , for the previous year. However, 17   in the case of a deficiency in the family farm tax credit fund 18   to pay the credits in full, the credit on each eligible tract 19   of agricultural land in the state shall be proportionate and 20   applied as provided in this chapter . 21   Sec. 39. Section 425A.5, Code 2025, is amended to read as 22   follows: 23   425A.5 Computation by county auditor. 24   The family farm tax credit allowed each year shall be 25   computed as follows: On or before April 1, the county auditor 26   shall list by school districts all tracts of agricultural 27   land which are entitled to credit, the taxable value for the   28   previous year, the budget from each school district for the 29   previous year, and the tax rate determined for the general 30   fund of the school district in the manner prescribed in 31   section 444.3 for the previous year, and if the tax rate is in 32   excess of five dollars and forty cents per thousand dollars of   33   assessed value   the levy rate under section 257.3, subsection 34   1, paragraph   a , the auditor shall multiply the tax levy which 35   -21-   LSB 2982XC (4) 91   jm/md   21/ 76                    

  S.F. _____   is in excess of five dollars and forty cents per thousand 1   dollars of assessed value   the levy rate under section 257.3, 2   subsection 1, paragraph a , by the total taxable value of the 3   agricultural land entitled to credit in the school district, 4   and on or before April 1, certify the total amount of credit 5   and the total number of acres entitled to the credit to the 6   department of revenue. 7   Sec. 40. Section 426.3, Code 2025, is amended to read as 8   follows: 9   426.3 Where credit given. 10   The agricultural land credit fund shall be apportioned each 11   year in the manner hereinafter provided so as to give a credit 12   against the tax on each tract of agricultural lands within the 13   several school districts of the state in which the levy for 14   the general school fund exceeds five dollars and forty cents   15   per thousand dollars of assessed value the levy rate under 16   section 257.3, subsection 1, paragraph a ; the amount of such 17   credit on each tract of such lands shall be the amount the tax 18   levied for the general school fund exceeds the amount of tax 19   which would be levied on said tract of such lands were the 20   levy for the general school fund five dollars and forty cents   21   per thousand dollars of assessed value the levy rate under 22   section 257.3, subsection 1, paragraph   a , for the previous 23   year, except in the case of a deficiency in the agricultural 24   land credit fund to pay said credits in full, in which case the 25   credit on each eligible tract of such lands in the state shall 26   be proportionate and shall be applied as hereinafter provided. 27   Sec. 41. Section 426.6, subsection 1, Code 2025, is amended   28   to read as follows: 29   1. The agricultural land tax credit allowed each year 30   shall be computed as follows: On or before April 1, the 31   county auditor shall list by school districts all tracts of 32   agricultural lands which are entitled to credit, together with 33   the taxable value for the previous year, together with the 34   budget from each school district for the previous year, and the 35   -22-   LSB 2982XC (4) 91   jm/md   22/ 76                   

  S.F. _____   tax rate determined for the general fund of the district in 1   the manner prescribed in section 444.3 for the previous year, 2   and if such tax rate is in excess of five dollars and forty   3   cents per thousand dollars of assessed value the levy rate 4   under section 257.3, subsection 1, paragraph   a , the auditor 5   shall multiply the tax levy which is in excess of five dollars   6   and forty cents per thousand dollars of assessed value the 7   levy rate under section 257.3, subsection 1, paragraph a , by 8   the total taxable value of the agricultural lands entitled to 9   credit in the district, and on or before April 1, certify the 10   amount to the department of revenue. 11   Sec. 42. REPEAL. Section 298.18A, Code 2025, is repealed. 12   Sec. 43. ADJUSTMENT OF CALCULATIONS. For property tax 13   credits under chapters 425A and 426 for property taxes due and 14   payable in the fiscal year beginning July 1, 2026, the tax rate 15   determined for the general fund of the school district in the 16   manner prescribed in section 444.3 for the previous year shall 17   be determined using the appropriate property tax levy rate 18   under section 257.3, as amended in this division of this Act. 19   Sec. 44. EFFECTIVE DATE. Except for the section of this 20   division of this Act amending section 257.31, this division of 21   this Act takes effect January 1, 2026. 22   Sec. 45. APPLICABILITY. Except for the section of this 23   division of this Act amending section 257.31, this division 24   of this Act applies to fiscal years and school budget years 25   beginning on or after July 1, 2026. 26   DIVISION IV   27   PROPERTY CLASSIFICATIONS, VALUATIONS, AND ASSESSMENT   28   LIMITATIONS   29   Sec. 46. Section 386.8, Code 2025, is amended to read as   30   follows:   31   386.8 Operation tax. 32   A city may establish a self-supported improvement district 33   operation fund, and may certify taxes not to exceed the 34   rate limitation as established in the ordinance creating the 35   -23-   LSB 2982XC (4) 91   jm/md   23/ 76             

  S.F. _____   district, or any amendment thereto, each year to be levied 1   for the fund against all of the property in the district, 2   for the purpose of paying the administrative expenses of 3   the district, which may include but are not limited to 4   administrative personnel salaries, a separate administrative 5   office, planning costs including consultation fees, engineering 6   fees, architectural fees, and legal fees and all other expenses 7   reasonably associated with the administration of the district 8   and the fulfilling of the purposes of the district. The taxes 9   levied for this fund may also be used for the purpose of paying 10   maintenance expenses of improvements or self-liquidating 11   improvements for a specified length of time with one or more 12   options to renew if such is clearly stated in the petition 13   which requests the council to authorize construction of the 14   improvement or self-liquidating improvement, whether or not 15   such petition is combined with the petition requesting creation 16   of a district. Parcels of property which are assessed as 17   residential property for property tax purposes are exempt from 18   the tax levied under this section except residential properties 19   within a duly designated historic district or property 20   classified as residential   multiresidential property under 21   section 441.21, subsection 14 13 , paragraph a , subparagraph 22   (6)   (5) . A tax levied under this section is not subject to the 23   levy limitation in section 384.1 . 24   Sec. 47. Section 386.9, Code 2025, is amended to read as 25   follows: 26   386.9 Capital improvement tax. 27   A city may establish a capital improvement fund for a 28   district and may certify taxes, not to exceed the rate 29   established by the ordinance creating the district, or any 30   subsequent amendment thereto, each year to be levied for 31   the fund against all of the property in the district, for 32   the purpose of accumulating moneys for the financing or 33   payment of a part or all of the costs of any improvement or 34   self-liquidating improvement. However, parcels of property 35   -24-   LSB 2982XC (4) 91   jm/md   24/ 76        

  S.F. _____   which are assessed as residential property for property tax 1   purposes are exempt from the tax levied under this section 2   except residential properties within a duly designated historic 3   district or property classified as residential   multiresidential 4   property under section 441.21, subsection 14   13 , paragraph a , 5   subparagraph (6)   (5) . A tax levied under this section is not 6   subject to the levy limitations in section 384.1 or 384.7 . 7   Sec. 48. Section 386.10, Code 2025, is amended to read as 8   follows: 9   386.10 Debt service tax. 10   A city shall establish a self-supported municipal 11   improvement district debt service fund whenever any 12   self-supported municipal improvement district bonds are issued 13   and outstanding, other than revenue bonds, and shall certify 14   taxes to be levied against all of the property in the district 15   for the debt service fund in the amount necessary to pay 16   interest as it becomes due and the amount necessary to pay, 17   or to create a sinking fund to pay, the principal at maturity 18   of all self-supported municipal improvement district bonds as 19   authorized in section 386.11 , issued by the city. However, 20   parcels of property which are assessed as residential property 21   for property tax purposes at the time of the issuance of the 22   bonds are exempt from the tax levied under this section until 23   the parcels are no longer assessed as residential property 24   or until the residential properties are designated as a part 25   of a historic district or property classified as residential   26   multiresidential property under section 441.21, subsection 14 27   13   , paragraph a , subparagraph (6) (5) . 28   Sec. 49. Section 404.2, subsection 2, paragraph f, Code 29   2025, is amended to read as follows: 30   f. A statement specifying whether the revitalization is 31   applicable to none, some, or all of the property assessed as 32   residential, multiresidential,   agricultural, commercial, or 33   industrial property within the designated area or a combination 34   thereof and whether the revitalization is for rehabilitation   35   -25-   LSB 2982XC (4) 91   jm/md   25/ 76               

  S.F. _____   and additions to existing buildings or new construction or 1   both. If revitalization is made applicable only to some 2   property within an assessment classification, the definition of 3   that subset of eligible property must be by uniform criteria 4   which further some planning objective identified in the plan. 5   The city shall state how long it is estimated that the area 6   shall remain a designated revitalization area which time 7   shall be longer than one year from the date of designation 8   and shall state any plan by the city to issue revenue bonds 9   for revitalization projects within the area. For a county, 10   a revitalization area shall include only property which 11   will be used as industrial property, commercial property, 12   multiresidential property,   or residential property. However, a 13   county shall not provide a tax exemption under this chapter to 14   commercial property , multiresidential property,   or residential 15   property which is located within the limits of a city. 16   Sec. 50. Section 404.3, subsection 4, paragraph a, Code 17   2025, is amended by striking the paragraph and inserting in 18   lieu thereof the following: 19   a. All qualified real estate assessed as any of the 20   following is eligible to receive a one hundred percent 21   exemption from taxation on the actual value added by the 22   improvements: 23   (1) Residential property. 24   (2) Commercial property if the commercial property 25   consists of three or more separate living quarters with at 26   least seventy-five percent of the space used for residential 27   purposes. 28   (3) Multiresidential property if the multiresidential 29   property consists of three or more separate living quarters 30   with at least seventy-five percent of the space used for 31   residential purposes. 32   Sec. 51. Section 404.3A, Code 2025, is amended to read as 33   follows:   34   404.3A Residential development area exemption. 35   -26-   LSB 2982XC (4) 91   jm/md   26/ 76    

  S.F. _____   Notwithstanding the schedules provided for in section 404.3 , 1   all qualified real estate assessed as residential property or   2   multiresidential property , excluding property classified as 3   residential multiresidential property under section 441.21, 4   subsection 14   13 , paragraph a , subparagraph (6) (5) , in an 5   area designated under section 404.1, subsection 5 , is eligible 6   to receive an exemption from taxation on the first seventy-five 7   thousand dollars of actual value added by the improvements. 8   The exemption is for a period of five years. 9   Sec. 52. Section 404.3D, Code 2025, is amended to read as 10   follows: 11   404.3D Exemptions for residential and multiresidential   12   property. 13   For revitalization areas established under this chapter 14   on or after July 1, 2024, and for first-year exemption 15   applications for property located in a revitalization area in 16   existence on July 1, 2024, filed on or after July 1, 2024, an 17   exemption authorized under this chapter for property that is 18   residential property or multiresidential property   shall not 19   apply to property tax levies imposed by a school district. 20   Sec. 53. Section 441.21, subsection 1, paragraph b, 21   subparagraph (1), Code 2025, is amended to read as follows: 22   (1) The actual value of all property subject to assessment 23   and taxation shall be the fair and reasonable market value of 24   such property except as otherwise provided in this section . 25   Market value is defined as the fair and reasonable exchange 26   in the year in which the property is listed and valued between 27   a willing buyer and a willing seller, neither being under any 28   compulsion to buy or sell and each being familiar with all 29   the facts relating to the particular property. Sale prices 30   of the property or comparable property in normal transactions 31   reflecting market value, and the probable availability 32   or unavailability of persons interested in purchasing the 33   property, shall be taken into consideration in arriving at 34   its market value. In arriving at market value, sale prices 35   -27-   LSB 2982XC (4) 91   jm/md   27/ 76            

  S.F. _____   of property in abnormal transactions not reflecting market 1   value shall not be taken into account, or shall be adjusted to 2   eliminate the effect of factors which distort market value, 3   including but not limited to built-to-suit construction,   4   sale-leaseback transactions, leased fee sales,   sales to 5   immediate family of the seller   between related parties , 6   foreclosure or other forced sales, contract sales, discounted 7   purchase transactions or purchase of adjoining land or other 8   land to be operated as a unit. 9   Sec. 54. Section 441.21, subsection 1, paragraph e, Code 10   2025, is amended to read as follows: 11   e. The actual value of agricultural property shall be 12   determined on the basis of productivity and net earning 13   capacity of the property determined on the basis of its use for 14   agricultural purposes capitalized at a rate of seven percent 15   and applied uniformly among counties and among classes of 16   property. However, for assessment years beginning on or after   17   January 1, 2026, structures on agricultural land constructed on   18   or after January 1, 2026, that are not agricultural dwellings   19   shall not be included in determination of productivity and 20   net earning capacity of agricultural property and shall not   21   be allocated any portion of the total county productivity 22   value so determined. However, such structures shall be   23   treated similarly to agricultural structures constructed 24   before January 1, 2026, when applying any equalization 25   order of the department. Such agricultural structures shall 26   instead be valued according to the structures replacement 27   cost less depreciation and obsolescence and the structures   28   assessed value subject to taxation prior to application of any 29   assessment limitation under subsection 4 shall be equal to the   30   product of the structures value multiplied by the agricultural   31   factor, as determined in 701 IAC 102.3(2) or succeeding rule of   32   the department. Any formula or method employed to determine 33   productivity and net earning capacity of property shall be 34   adopted in full by rule. 35   -28-   LSB 2982XC (4) 91   jm/md   28/ 76                        

  S.F. _____   Sec. 55. Section 441.21, subsection 2, Code 2025, is amended 1   to read as follows: 2   2. In the event market value of the property being assessed 3   cannot be readily established in the foregoing manner, then 4   the assessor may determine the value of the property using the 5   other uniform and recognized appraisal methods including its 6   productive and earning capacity, if any, industrial conditions, 7   its cost, physical and functional depreciation and obsolescence 8   and replacement cost, and all other factors which would assist 9   in determining the fair and reasonable market value of the 10   property but the actual value shall not be determined by use 11   of only one such factor. The following shall not be taken into 12   consideration: Special value or use value of the property to 13   its present owner, and the goodwill or value of a business 14   which uses the property as distinguished from the value of 15   the property as property. In addition, for assessment years 16   beginning on or after January 1, 2018, and unless otherwise 17   required for property valued by the department of revenue 18   pursuant to chapters 428 , 437 , and 438 , the assessor shall not 19   take into consideration and shall not request from any person 20   sales or receipts data, expense data, balance sheets, bank 21   account information, or other data related to the financial 22   condition of a business operating in whole or in part on the 23   property if the property is both classified as commercial or 24   industrial property and owned and used by the owner of the 25   business. However, in assessing property that is rented or 26   leased to low-income individuals and families as authorized by 27   section 42 of the Internal Revenue Code, as amended, and which   28   section limits the amount that the individual or family pays 29   for the rental or lease of units in the property, the assessor 30   shall, unless the owner elects to withdraw the property from 31   the assessment procedures for section 42 property, use the 32   productive and earning capacity from the actual rents received 33   as a method of appraisal and shall take into account the extent 34   to which that use and limitation reduces the market value of   35   -29-   LSB 2982XC (4) 91   jm/md   29/ 76  

  S.F. _____   the property. The assessor shall not consider any tax credit 1   equity or other subsidized financing as income provided to 2   the property in determining the assessed value. The property 3   owner shall notify the assessor when property is withdrawn 4   from section 42 eligibility under the Internal Revenue Code 5   or if the owner elects to withdraw the property from the 6   assessment procedures for section 42 property under this 7   subsection . The property shall not be subject to section 42 8   assessment procedures for the assessment year for which section 9   42 eligibility is withdrawn or an election is made. This 10   notification must be provided to the assessor no later than 11   March 1 of the assessment year or the owner will be subject to a 12   penalty of five hundred dollars for that assessment year. The 13   penalty shall be collected at the same time and in the same 14   manner as regular property taxes. An election to withdraw 15   from the assessment procedures for section 42 property is 16   irrevocable. Property that is withdrawn from the assessment 17   procedures for section 42 property shall be classified and 18   assessed as residential   multiresidential property unless the 19   property otherwise fails to meet the requirements of subsection 20   14   13 . Upon adoption of uniform rules by the department of 21   revenue or succeeding authority covering assessments and 22   valuations of such properties, the valuation on such properties 23   shall be determined in accordance with such rules and in 24   accordance with forms and guidelines contained in the real 25   property appraisal manual prepared by the department as updated 26   from time to time for assessment purposes to assure uniformity, 27   but such rules, forms, and guidelines shall not be inconsistent 28   with or change the foregoing means of determining the actual, 29   market, taxable, and assessed values. 30   Sec. 56. Section 441.21, subsections 4 and 5, Code 2025, are   31   amended to read as follows: 32   4. For valuations established as of January 1, 1979   2025 , 33   the percentage of actual value at which agricultural and 34   residential property shall be assessed shall be the quotient of   35   -30-   LSB 2982XC (4) 91   jm/md   30/ 76         

  S.F. _____   the dividend and divisor as defined in this section determined 1   under this subsection   . 2   a. (1) The percentage of actual value at which agricultural 3   property shall be assessed shall be the quotient of the 4   dividend and divisor as defined in this paragraph.   The 5   dividend for each class of property   shall be the dividend 6   as determined for each class of agricultural property 7   for valuations established as of January 1, 1978 2024 , as 8   determined under the applicable law for that assessment year,   9   adjusted by the product obtained by multiplying the percentage 10   determined for that year by the amount of any additions or 11   deletions to actual value, excluding those resulting from 12   the revaluation of existing properties, as reported by the 13   assessors on the abstracts of assessment for 1978   2024 , plus 14   six three percent of the amount so determined. 15   (2) However, if the difference between the dividend so 16   determined for either class of property and the dividend for 17   that class of property for valuations established as of January   18   1, 1978, adjusted by the product obtained by multiplying   19   the percentage determined for that year by the amount of 20   any additions or deletions to actual value, excluding those   21   resulting from the revaluation of existing properties, as 22   reported by the assessors on the abstracts of assessment for   23   1978, is less than six percent, the 1979 dividend for the other 24   class of property shall be the dividend as determined for that 25   class of property for valuations established as of January 26   1, 1978, adjusted by the product obtained by multiplying 27   the percentage determined for that year by the amount of 28   any additions or deletions to actual value, excluding those 29   resulting from the revaluation of existing properties, as   30   reported by the assessors on the abstracts of assessment for 31   1978, plus a percentage of the amount so determined which is   32   equal to the percentage by which the dividend as determined 33   for the other class of property for valuations established   34   as of January 1, 1978, adjusted by the product obtained by 35   -31-   LSB 2982XC (4) 91   jm/md   31/ 76                                           

  S.F. _____   multiplying the percentage determined for that year by the 1   amount of any additions or deletions to actual value, excluding   2   those resulting from the revaluation of existing properties, as 3   reported by the assessors on the abstracts of assessment for 4   1978, is increased in arriving at the 1979 dividend for the   5   other class of property.   6   (3) For valuations established for assessment years 7   beginning on or after January 1, 2022, the calculation of the 8   dividend for residential property under   this subsection shall 9   exclude the value of all property described in subsection 14 , 10   paragraph   a , subparagraphs (2), (3), (4), (5), and (6), 11   and the property described in subsection 14 , paragraph a , 12   subparagraph (7), that contains three or more separate dwelling 13   units.   14   b. (1) The divisor for each class of property shall be 15   the total actual value of all such agricultural property in 16   the state in the preceding year, as reported by the assessors 17   on the abstracts of assessment submitted for 1978   2024 , as 18   determined under the applicable law for that assessment year,   19   plus the amount of value added to said total actual value 20   by the revaluation of existing properties in 1979   2025 as 21   equalized by the director of revenue pursuant to section 22   441.49 . The director shall utilize information reported on 23   abstracts of assessment submitted pursuant to section 441.45 24   in determining such percentage. For valuations established as   25   of January 1, 2026, and each assessment year thereafter, the 26   percentage of actual value as equalized by the department of 27   revenue as provided in section 441.49 at which agricultural 28   property shall be assessed shall be calculated in accordance 29   with the methods provided in this paragraph.   30   (2) For valuations established for assessment years 31   beginning on or after January 1, 2022, the calculation of the   32   divisor for residential property under this subsection shall 33   exclude the value of all property described in   subsection 14 , 34   paragraph a , subparagraphs (2), (3), (4), (5), and (6), 35   -32-   LSB 2982XC (4) 91   jm/md   32/ 76                                                           

  S.F. _____   and the property described in subsection 14 , paragraph a , 1   subparagraph (7), that contains three or more separate dwelling   2   units. 3   c. (1) For valuations established as of January 1, 1980, 4   and each assessment year thereafter beginning before January   5   1, 2013, the percentage of actual value as equalized by the   6   director of revenue as provided in section 441.49 at which 7   agricultural and residential property shall be assessed shall 8   be calculated in accordance with the methods provided in   9   this subsection , including the limitation of increases in 10   agricultural and residential assessed values to the percentage   11   increase of the other class of property if the other class 12   increases less than the allowable limit adjusted to include 13   the applicable and current values as equalized by the director   14   of revenue, except that any references to six percent in this 15   subsection shall be four percent. 16   (2) For valuations established as of January 1, 2013, and 17   each assessment year thereafter, the percentage of actual   18   value as equalized by the department of revenue as provided in   19   section 441.49 at which agricultural and residential property 20   shall be assessed shall be calculated in accordance with the   21   methods provided in this subsection , including the limitation 22   of increases in agricultural and residential assessed values to   23   the percentage increase of the other class of property if the 24   other class increases less than the allowable limit adjusted 25   to include the applicable and current values as equalized by 26   the department of revenue, except that any references to six 27   percent in this subsection shall be three percent. 28   b. (1) For valuations established for the assessment year 29   beginning January 1, 2024, the percentage of actual value   30   as equalized by the department of revenue as provided in 31   section 441.49 at which residential property shall be assessed   32   shall be forty-seven and four thousand three hundred sixteen 33   ten-thousandths percent.   34   (2) For valuations established for the assessment year 35   -33-   LSB 2982XC (4) 91   jm/md   33/ 76                                                               

  S.F. _____   beginning January 1, 2025, and each assessment year thereafter, 1   the percentage of actual value as equalized by the department   2   of revenue as provided in section 441.49 at which residential 3   property shall be assessed shall be one hundred percent. 4   5. a. (1)   For valuations established as of January 1, 5   1979, property valued by the department of revenue pursuant to   6   chapter 437 shall be considered as one class of property and 7   shall be assessed as a percentage of its actual value. The 8   percentage shall be determined by the director of revenue in   9   accordance with the provisions of this section . For valuations 10   established as of January 1, 1979, the percentage shall be   11   the quotient of the dividend and divisor as defined in this 12   section . The dividend shall be the total actual valuation 13   established for 1978 by the department of revenue, plus ten   14   percent of the amount so determined. The divisor for property 15   valued by the department of revenue pursuant to chapter 437 16   shall be the valuation established for 1978, plus the amount of 17   value added to the total actual value by the revaluation of the   18   property by the department of revenue as of January 1, 1979.   19   For valuations established as of January 1, 1980, property 20   valued by the department of revenue pursuant to   chapter 437 21   shall be assessed at a percentage of its actual value. The 22   percentage shall be determined by the director of revenue in   23   accordance with the provisions of this section . For valuations 24   established as of January 1, 1980, the percentage shall be 25   the quotient of the dividend and divisor as defined in this 26   section . The dividend shall be the total actual valuation 27   established for 1979 by the department of revenue, plus eight 28   percent of the amount so determined. The divisor for property 29   valued by the department of revenue pursuant to   chapter 437 30   shall be the valuation established for 1979, plus the amount of 31   value added to the total actual value by the revaluation of the   32   property by the department of revenue as of January 1, 1980.   33   For valuations established as of January 1, 1981, and each year   34   thereafter, the percentage of actual value at which property 35   -34-   LSB 2982XC (4) 91   jm/md   34/ 76                                                   

  S.F. _____   valued by the department of revenue pursuant to chapter 437 1   shall be assessed shall be calculated in accordance with the   2   methods provided herein, except that any references to ten 3   percent in this subsection shall be eight percent. 4   (2)   (1) For valuations established on or after January 1, 5   2013, property valued by the department of revenue pursuant to 6   chapter 434 shall be assessed at a portion of its actual value 7   determined in the same manner at which property assessed as 8   commercial property is assessed under paragraph b for the same 9   assessment year. 10   (3)   (2) For valuations established for the assessment year 11   beginning January 1, 2025, and each assessment year thereafter, 12   the percentage of actual value at which property valued by the 13   department of revenue pursuant to chapters 428 , 437,   and 438 14   shall be assessed shall be ninety-eight one hundred percent. 15   (4) For valuations established for the assessment year 16   beginning January 1, 2026, the percentage of actual value at 17   which property valued by the department of revenue pursuant   18   to   chapters 428 and 438 shall be assessed shall be ninety-six 19   percent. 20   (5)   For valuations established for the assessment year 21   beginning January 1, 2027, the percentage of actual value at 22   which property valued by the department of revenue pursuant to   23   chapters 428 and 438 shall be assessed shall be ninety-four 24   percent. 25   (6) For valuations established for the assessment year 26   beginning January 1, 2028, the percentage of actual value at 27   which property valued by the department of revenue pursuant 28   to chapters 428 and 438 shall be assessed shall be ninety-two 29   percent.   30   (7) For valuations established on or after January 1, 2029, 31   the percentage of actual value at which property valued by the   32   department of revenue pursuant to chapters 428 and 438 shall be 33   assessed shall be ninety percent.   34   b. For valuations established on or after January 1, 2013, 35   -35-   LSB 2982XC (4) 91   jm/md   35/ 76                                                            

  S.F. _____   commercial Commercial property, excluding properties referred 1   to in section 427A.1, subsection 9 , shall be assessed at a 2   portion of its actual value, as determined in this paragraph 3   b . 4   (1) For valuations established for the assessment year 5   beginning January 1, 2013, the percentage of actual value   6   as equalized by the department of revenue as provided in 7   section 441.49 at which commercial property shall be assessed 8   shall be ninety-five percent. For valuations established   9   for the assessment year beginning January 1, 2014, and each 10   assessment year thereafter beginning before January 1, 2022,   11   the percentage of actual value as equalized by the department 12   of revenue as provided in section 441.49 at which commercial 13   property shall be assessed shall be ninety percent.   14   (2) (1) For valuations established for the assessment year 15   beginning January 1, 2022, and each assessment year thereafter 16   beginning before January 1, 2025 , the portion of actual value 17   at which each property unit of commercial property shall be 18   assessed shall be the sum of the following: 19   (a) An amount equal to the product of the assessment 20   limitation percentage applicable to residential property under 21   subsection 4 for that assessment year multiplied by the actual 22   value of the property that exceeds zero dollars but does not 23   exceed one hundred fifty thousand dollars. 24   (b) An amount equal to ninety percent of the actual value of 25   the property for that assessment year that exceeds one hundred 26   fifty thousand dollars. 27   (2)   For valuations established for the assessment year 28   beginning January 1, 2025, and each assessment year thereafter, 29   the percentage of actual value as equalized by the department   30   of revenue as provided in section 441.49 at which commercial 31   property shall be assessed shall be one hundred percent.   32   c. For valuations established on or after January 1, 2013, 33   industrial   Industrial property, excluding properties referred 34   to in section 427A.1, subsection 9 , shall be assessed at a   35   -36-   LSB 2982XC (4) 91   jm/md   36/ 76                                

  S.F. _____   portion of its actual value, as determined in this paragraph 1   c . 2   (1)   For valuations established for the assessment year 3   beginning January 1, 2013, the percentage of actual value 4   as equalized by the department of revenue as provided in   5   section 441.49   at which industrial property shall be assessed 6   shall be ninety-five percent. For valuations established 7   for the assessment year beginning January 1, 2014, and each 8   assessment year thereafter beginning before January 1, 2022,   9   the percentage of actual value as equalized by the department 10   of revenue as provided in   section 441.49 at which industrial 11   property shall be assessed shall be ninety percent. 12   (2) (1) For valuations established for the assessment year 13   beginning January 1, 2022, and each assessment year thereafter 14   beginning before January 1, 2025   , the portion of actual value 15   at which each property unit of industrial property shall be 16   assessed shall be the sum of the following: 17   (a) An amount equal to the product of the assessment 18   limitation percentage applicable to residential property under 19   subsection 4 for that assessment year multiplied by the actual 20   value of the property that exceeds zero dollars but does not 21   exceed one hundred fifty thousand dollars. 22   (b) An amount equal to ninety percent of the actual value of 23   the property for that assessment year that exceeds one hundred 24   fifty thousand dollars. 25   (2)   For valuations established for the assessment year 26   beginning January 1, 2025, and each assessment year thereafter, 27   the percentage of actual value as equalized by the department 28   of revenue as provided in section 441.49 at which industrial 29   property shall be assessed shall be one hundred percent.   30   d. For valuations established for the assessment year 31   beginning January 1, 2019, and each assessment year thereafter 32   beginning before January 1, 2025   , the percentages or portions 33   of actual value at which property is assessed, as determined 34   under this subsection , shall not be applied to the value of 35   -37-   LSB 2982XC (4) 91   jm/md   37/ 76                            

  S.F. _____   wind energy conversion property valued under section 427B.26 1   the construction of which is approved by the Iowa utilities 2   commission on or after July 1, 2018. 3   e. (1) For the fiscal year beginning July 1, 2023,   4   there is appropriated from the general fund of the state to   5   the department of revenue the sum of one hundred twenty-two   6   million three hundred fifty thousand dollars to be used 7   for payments under this paragraph calculated as a result 8   of the assessment limitations imposed under paragraph   b , 9   subparagraph (2), subparagraph division (a), and paragraph 10   c   , subparagraph (2), subparagraph division (a). For each 11   fiscal year beginning on or after July 1, 2024, but before 12   July 1, 2026, there is appropriated from the general fund of 13   the state to the department of revenue the sum of one hundred 14   twenty-five million dollars to be used for payments under this 15   paragraph calculated as a result of the assessment limitations 16   imposed under paragraph b , subparagraph (2), subparagraph 17   division (a), Code 2025,   and paragraph c , subparagraph (2), 18   subparagraph division (a) , Code 2025   . 19   (2) For fiscal years beginning on or after July 1, 2023, but 20   before July 1, 2026,   each county treasurer shall be paid by the 21   department of revenue an amount calculated under subparagraph 22   (4) for the applicable fiscal year   . If an amount appropriated 23   for the fiscal year is insufficient to make all payments as 24   calculated under subparagraph (4), the director of revenue 25   shall prorate the payments to the county treasurers and shall 26   notify the county auditors of the pro rata percentage on or 27   before September 30. 28   (3) On or before July 1 of each applicable   fiscal year, the 29   assessor shall report to the county auditor that portion of the 30   total actual value of all commercial property and industrial 31   property in the county that is subject to the assessment 32   limitations imposed under paragraph b , subparagraph (2), 33   subparagraph division (a), Code 2025,   and paragraph c , 34   subparagraph (2), subparagraph division (a), Code 2025, for the 35   -38-   LSB 2982XC (4) 91   jm/md   38/ 76                       

  S.F. _____   assessment year used to calculate the taxes due and payable in 1   that fiscal year. 2   (4) On or before September 1 of each applicable   fiscal year, 3   the county auditor shall prepare a statement, based on the 4   report received in subparagraph (3) and information transmitted 5   to the county auditor under chapter 434 , listing for each 6   taxing district in the county: 7   (a) The product of the portion of the total actual value 8   of all commercial property, industrial property, and property 9   valued by the department under chapter 434 in the county 10   that is subject to the assessment limitations imposed under 11   paragraph b , subparagraph (2), subparagraph division (a), 12   Code 2025,   and paragraph c , subparagraph (2), subparagraph 13   division (a), Code 2025,   for the applicable assessment year 14   used to calculate taxes which are due and payable in the 15   applicable fiscal year multiplied by the difference, stated 16   as a percentage, between ninety percent and the assessment 17   limitation percentage applicable to residential property under 18   subsection 4 for the applicable assessment year. 19   (b) The tax levy rate per one thousand dollars of assessed 20   value for each taxing district for the applicable fiscal year. 21   (c) The amount of the payment for each county is equal to 22   the amount determined pursuant to subparagraph division (a), 23   multiplied by the tax rate specified in subparagraph division 24   (b), and then divided by one thousand dollars. 25   (5) The county auditor shall certify and forward one copy of 26   the statement described in subparagraph (4) to the department 27   of revenue not later than September 1 of each fiscal year. 28   (6) The amounts determined under this paragraph shall 29   be paid by the department to the county treasurers in equal 30   installments in September and March of each year. The county 31   treasurer shall apportion the payments among the eligible 32   taxing districts in the county and the amounts received by each 33   taxing authority shall be treated the same as property taxes 34   paid. 35   -39-   LSB 2982XC (4) 91   jm/md   39/ 76     

  S.F. _____   f. For the purposes of this subsection , unless the context 1   otherwise requires: 2   (1) Contiguous parcels means any of the following: 3   (a) Parcels that share a common boundary. 4   (b) Parcels within the same building or structure 5   regardless of whether the parcels share a common boundary. 6   (c) Permanent improvements to the land that are situated 7   on one or more parcels of land that are assessed and taxed 8   separately from the permanent improvements if the parcels of 9   land upon which the permanent improvements are situated share 10   a common boundary. 11   (2) Parcel means the same as defined in section 445.1 . 12   Parcel also means that portion of a parcel assigned a 13   classification of commercial property or industrial property 14   pursuant to section 441.21,   subsection 14 13 , paragraph b . 15   (3) Property unit means a parcel or contiguous parcels 16   all of which are located within the same county, with the same 17   property tax classification, are owned by the same person, and 18   are operated by that person for a common use and purpose. 19   Sec. 57. Section 441.21, subsection 8, paragraph b, Code 20   2025, is amended to read as follows: 21   b. Notwithstanding paragraph a , any construction or 22   installation of a solar energy system on property classified 23   as agricultural, residential, multiresidential,   commercial, or 24   industrial property shall not increase the actual, assessed, 25   and taxable values of the property for five full assessment 26   years. 27   Sec. 58. Section 441.21, subsections 9 and 10, Code 2025,   28   are amended to read as follows: 29   9. Not later than November 1, 1979   2025 , and November 1 30   of each subsequent year, the director shall certify to the 31   county auditor of each county the percentages   percentage of 32   actual value at which residential property, agricultural 33   property , commercial property, industrial property, property   34   valued by the department of revenue pursuant to   chapters 428 35   -40-   LSB 2982XC (4) 91   jm/md   40/ 76              

  S.F. _____   and 438 , property valued by the department of revenue pursuant 1   to   chapter 434 , and property valued by the department of 2   revenue pursuant to chapter 437 in each assessing jurisdiction 3   in the county shall be assessed for taxation , including for 4   assessment years beginning on or after January 1, 2022, the   5   percentages used to apply the assessment limitations under   6   subsection 5 , paragraphs b and c as determined under 7   subsection 4 . The county auditor shall proceed to determine 8   the assessed values of agricultural property , residential   9   property, commercial property, industrial property, property 10   valued by the department of revenue pursuant to   chapters 428 11   and 438 , property valued by the department of revenue pursuant 12   to chapter 434 , and property valued by the department of 13   revenue pursuant to   chapter 437 by applying such percentages 14   the percentage to the current actual value of such property, 15   as reported to the county auditor by the assessor, and the 16   assessed values so determined shall be the taxable values of 17   such properties upon which the levy shall be made. 18   10. The percentages   percentage of actual value computed by 19   the department of revenue under subsection 4 for agricultural 20   property , residential property, commercial property, industrial   21   property, property valued by the department of revenue pursuant 22   to   chapters 428 and 438 , property valued by the department of 23   revenue pursuant to chapter 434 , and property valued by the 24   department of revenue pursuant to chapter 437 , including for 25   assessment years beginning on or after January 1, 2022, the 26   percentages used to apply the assessment limitations under 27   subsection 5   , paragraphs b and c , and used to determine 28   assessed values of those classes of agricultural property 29   do   does not constitute a rule as defined in section 17A.2, 30   subsection 11 .   31   Sec. 59. Section 441.21, subsections 13 and 14, Code 2025,   32   are amended to read as follows: 33   13. a. Beginning with valuations established on or after 34   January 1, 2016   2025 , but before January 1, 2022, all of the 35   -41-   LSB 2982XC (4) 91   jm/md   41/ 76                                                                   

  S.F. _____   following shall be valued as a separate class of property 1   known as multiresidential property and, excluding properties 2   referred to in section 427A.1, subsection 9 , shall be assessed   3   at a percentage of its actual value, as determined in this 4   subsection   the percentage of actual value as equalized by 5   the department of revenue as provided in section 441.49 at   6   which multiresidential property shall be assessed shall be one 7   hundred percent : 8   (1) Mobile home parks. 9   (2) Manufactured home communities. 10   (3) Land-leased communities. 11   (4) Assisted living facilities. 12   (5) A parcel primarily used or intended for human habitation 13   containing three or more separate dwelling units. If a 14   portion of such a parcel is used or intended for a purpose 15   that, if the primary use, would be classified as commercial 16   property or industrial property, each such portion, including 17   a proportionate share of the land included in the parcel, if 18   applicable, shall be assigned the appropriate classification 19   pursuant to paragraph c   b . 20   (6) For a parcel that is primarily used or intended for use 21   as commercial property or industrial property, that portion 22   of the parcel that is used or intended for human habitation, 23   regardless of the number of dwelling units contained on the 24   parcel, including a proportionate share of the land included 25   in the parcel, if applicable. The portion of such a parcel 26   used or intended for use as commercial property or industrial 27   property, including a proportionate share of the land included 28   in the parcel, if applicable, shall be assigned the appropriate 29   classification pursuant to paragraph c   b . 30   b. For valuations established for the assessment year 31   beginning January 1, 2015, the percentage of actual value as   32   equalized by the department of revenue as provided in section 33   441.49   at which multiresidential property shall be assessed 34   shall be the greater of eighty-six and twenty-five hundredths 35   -42-   LSB 2982XC (4) 91   jm/md   42/ 76                       

  S.F. _____   percent or the percentage of actual value determined by the 1   department of revenue at which property assessed as residential   2   property is assessed for the same assessment year under 3   subsection 4 . For valuations established for the assessment 4   year beginning January 1, 2016, the percentage of actual   5   value as equalized by the department of revenue as provided   6   in section 441.49 at which multiresidential property shall be 7   assessed shall be the greater of eighty-two and five-tenths 8   percent or the percentage of actual value determined by the   9   department of revenue at which property assessed as residential 10   property is assessed for the same assessment year under   11   subsection 4 . For valuations established for the assessment 12   year beginning January 1, 2017, the percentage of actual 13   value as equalized by the department of revenue as provided   14   in section 441.49 at which multiresidential property shall be 15   assessed shall be the greater of seventy-eight and seventy-five 16   hundredths percent or the percentage of actual value determined 17   by the department of revenue at which property assessed as   18   residential property is assessed for the same assessment   19   year under subsection 4 . For valuations established for the 20   assessment year beginning January 1, 2018, the percentage of   21   actual value as equalized by the department of revenue as 22   provided in   section 441.49 at which multiresidential property 23   shall be assessed shall be the greater of seventy-five percent 24   or the percentage of actual value determined by the department 25   of revenue at which property assessed as residential property 26   is assessed for the same assessment year under subsection 4 . 27   For valuations established for the assessment year beginning 28   January 1, 2019, the percentage of actual value as equalized 29   by the department of revenue as provided in   section 441.49 at 30   which multiresidential property shall be assessed shall be the 31   greater of seventy-one and twenty-five hundredths percent or   32   the percentage of actual value determined by the department 33   of revenue at which property assessed as residential property   34   is assessed for the same assessment year under subsection 4 . 35   -43-   LSB 2982XC (4) 91   jm/md   43/ 76                                                     

  S.F. _____   For valuations established for the assessment year beginning 1   January 1, 2020, the percentage of actual value as equalized   2   by the department of revenue as provided in section 441.49 3   at which multiresidential property shall be assessed shall 4   be the greater of sixty-seven and five-tenths percent or the   5   percentage of actual value determined by the department of   6   revenue at which property assessed as residential property 7   is assessed for the same assessment year under subsection 4 . 8   For valuations established for the assessment year beginning   9   January 1, 2021, the percentage of actual value as equalized 10   by the department of revenue as provided in   section 441.49 at 11   which multiresidential property shall be assessed shall be the 12   greater of sixty-three and seventy-five hundredths percent or 13   the percentage of actual value determined by the department of   14   revenue at which property assessed as residential property is 15   assessed for the same assessment year under subsection 4 . 16   c. b. Beginning with valuations established on or after 17   January 1, 2016   2025 , but before January 1, 2022, for parcels 18   for which a portion of the parcel satisfies the requirements 19   for classification as multiresidential property pursuant to 20   paragraph a , subparagraph (5) or (6), the assessor shall 21   assign to that portion of the parcel the classification 22   of multiresidential property and to such other portions of 23   the parcel the property classification for which such other 24   portions qualify. 25   d.   c. Property that is rented or leased to low-income 26   individuals and families as authorized by section 42 of the 27   Internal Revenue Code, and that has not been withdrawn from   28   section 42 assessment procedures under subsection 2 of this 29   section , or a hotel, motel, inn, or other building where rooms 30   or dwelling units are usually rented for less than one month 31   shall not be classified as multiresidential property under this 32   subsection .   33   e.   d. As used in this subsection :   34   (1) Assisted living facility means property for providing 35   -44-   LSB 2982XC (4) 91   jm/md   44/ 76                                  

  S.F. _____   assisted living as defined in section 231C.2 . Assisted living 1   facility also includes a health care facility, as defined in 2   section 135C.1 , an elder group home, as defined in section 3   231B.1 , a child foster care facility under chapter 237 , or 4   property used for a hospice program as defined in section 5   135J.1 . 6   (2) Dwelling unit means an apartment, group of rooms, 7   or single room which is occupied as separate living quarters 8   or, if vacant, is intended for occupancy as separate living 9   quarters, in which a tenant can live and sleep separately from 10   any other persons in the building. 11   (3) Land-leased community means the same as defined in 12   sections 335.30A and 414.28A . 13   (4) Manufactured home community means the same as a 14   land-leased community. 15   (5) Mobile home park means the same as defined in section 16   435.1 . 17   e.   For purposes of equalization under sections 441.47 18   through 441.49, multiresidential property shall be considered   19   residential property. 20   14. a.   Beginning with valuations established on or after 21   January 1, 2022 2025 , all of the following property primarily 22   used or intended for human habitation containing two or fewer   23   dwelling units shall be classified and valued as residential 24   property : . 25   (1) Property primarily used or intended for human 26   habitation containing two or fewer dwelling units. 27   (2) Mobile home parks. 28   (3) Manufactured home communities. 29   (4)   Land-leased communities. 30   (5) Assisted living facilities. 31   (6)   A parcel primarily used or intended for human habitation 32   containing three or more separate dwelling units. If a 33   portion of such a parcel is used or intended for a purpose   34   that, if the primary use, would be classified as commercial 35   -45-   LSB 2982XC (4) 91   jm/md   45/ 76                                      

  S.F. _____   property or industrial property, each such portion, including 1   a proportionate share of the land included in the parcel, if   2   applicable, shall be assigned the appropriate classification 3   pursuant to paragraph b . 4   (7)   For a parcel that is primarily used or intended for use 5   as commercial property or industrial property, that portion   6   of the parcel that is used or intended for human habitation, 7   regardless of the number of dwelling units contained on the 8   parcel, including a proportionate share of the land included   9   in the parcel, if applicable. The portion of such a parcel 10   used or intended for use as commercial property or industrial   11   property, including a proportionate share of the land included 12   in the parcel, if applicable, shall be assigned the appropriate 13   classification pursuant to paragraph   b . 14   b. Beginning with valuations established on or after 15   January 1, 2022, for parcels for which a portion of the parcel 16   satisfies the requirements for classification as residential 17   property pursuant to paragraph   a , subparagraph (6) or (7), 18   the assessor shall assign to that portion of the parcel the   19   classification of residential property and to such other 20   portions of the parcel the property classification for which   21   such other portions qualify. 22   c.   Property that is rented or leased to low-income 23   individuals and families as authorized by section 42 of the 24   Internal Revenue Code , and that has not been withdrawn from 25   section 42 assessment procedures under subsection 2 of this 26   section , or a hotel, motel, inn, or other building where rooms 27   or dwelling units are usually rented for less than one month 28   shall not be classified as residential property under this 29   subsection   . 30   d. As used in this subsection : 31   (1)   Assisted living facility means property for providing 32   assisted living as defined in   section 231C.2 . Assisted living 33   facility   also includes a health care facility, as defined in 34   section 135C.1 , an elder group home, as defined in section 35   -46-   LSB 2982XC (4) 91   jm/md   46/ 76                                                                       

  S.F. _____   231B.1 , a child foster care facility under chapter 237 , or 1   property used for a hospice program as defined in   section 2   135J.1 . 3   (2) Dwelling unit means an apartment, group of rooms, 4   or single room which is occupied as separate living quarters   5   or, if vacant, is intended for occupancy as separate living   6   quarters, in which a tenant can live and sleep separately from 7   any other persons in the building. 8   (3)   Land-leased community means the same as defined in 9   sections 335.30A and 414.28A . 10   (4)   Manufactured home community means the same as a 11   land-leased community. 12   (5) Mobile home park means the same as defined in section 13   435.1   . 14   Sec. 60. Section 558.46, Code 2025, is amended by adding the 15   following new subsection: 16   NEW SUBSECTION . 4A. For the purposes of this section, 17   residential property includes commercial or multiresidential 18   property. 19   Sec. 61. SAVINGS PROVISION. This division of this Act, 20   pursuant to section 4.13, does not affect the operation of, 21   or prohibit the application of, prior provisions of section 22   441.21, or rules adopted under chapter 17A to administer prior 23   provisions of section 441.21, for assessment years beginning 24   before January 1, 2025, or for duties, powers, protests, 25   appeals, proceedings, actions, or remedies attributable to an 26   assessment year beginning before January 1, 2025, including 27   property taxes due and payable in a fiscal year as the result 28   of an assessment year beginning before January 1, 2025. 29   Sec. 62. RETROACTIVE APPLICABILITY. This division of this   30   Act applies retroactively to assessment years beginning on or 31   after January 1, 2025. 32   DIVISION V   33   DISABLED VETERAN AND HOMESTEAD CREDITS AND EXEMPTIONS   34   Sec. 63. Section 25B.7, subsection 2, paragraph a, Code 35   -47-   LSB 2982XC (4) 91   jm/md   47/ 76                                        

  S.F. _____   2025, is amended to read as follows: 1   a. Homestead tax credit pursuant to section 425.1 ,   and 2   sections 425.2 through 425.13 , and section 425.15 . 3   Sec. 64. Section 425.1, subsection 2, Code 2025, is amended 4   by striking the subsection and inserting in lieu thereof the 5   following: 6   2. a. The homestead credit fund shall be apportioned each 7   year so as to give a credit against the tax on each eligible 8   homestead in the state equal to the amounts specified pursuant 9   to paragraph b or c , as applicable. 10   b. (1) If the owner of a homestead allowed a credit under 11   this subchapter is any of the following, the homestead credit 12   allowed on the homestead shall be the entire amount of tax 13   levied on the homestead: 14   (a) A veteran of any of the military forces of the United 15   States who acquired the homestead under 38 U.S.C. 21.801, 16   21.802 prior to August 6, 1991, or under 38 U.S.C. 2101, 2102. 17   (b) A veteran as defined in section 35.1 with a permanent 18   service-connected disability rating of one hundred percent, as 19   certified by the United States department of veterans affairs, 20   or a permanent and total disability rating based on individual 21   unemployability that is compensated at the one hundred percent 22   disability rate, as certified by the United States department 23   of veterans affairs. 24   (c) A former member of the national guard of any state 25   who otherwise meets the service requirements of section 35.1, 26   subsection 2, paragraph b , subparagraph (2) or (7), with a 27   permanent service-connected disability rating of one hundred 28   percent, as certified by the United States department of 29   veterans affairs, or a permanent and total disability rating 30   based on individual unemployability that is compensated at the 31   one hundred percent disability rate, as certified by the United 32   States department of veterans affairs. 33   (d) An individual who is a surviving spouse or a child and 34   who is receiving dependency and indemnity compensation pursuant 35   -48-   LSB 2982XC (4) 91   jm/md   48/ 76      

  S.F. _____   to 38 U.S.C. 1301 et seq., as certified by the United States 1   department of veterans affairs. 2   (2) (a) For an owner described in subparagraph (1), 3   subparagraph division (a), (b), or (c), the credit allowed 4   shall be continued to the estate of an owner who is deceased 5   or the surviving spouse and any child, as defined in section 6   234.1, who are the beneficiaries of a deceased owner, so long 7   as the surviving spouse remains unmarried. 8   (b) An individual described in subparagraph (1), 9   subparagraph division (d), is no longer eligible for the credit 10   upon termination of dependency and indemnity compensation under 11   38 U.S.C. 1301 et seq. 12   (3) An owner or a beneficiary of an owner who elects to 13   secure the credit provided in this paragraph is not eligible 14   for the credit provided in paragraph c or any other real 15   property tax credit or exemption provided by law for veterans 16   of military service. 17   (4) If an owner acquires a different homestead, the 18   credit allowed under this paragraph may be claimed on the new 19   homestead unless the owner fails to meet the other requirements 20   of this paragraph. 21   (5) (a) Except as provided in subparagraph division (b), 22   the list of the names and addresses of individuals allowed 23   a credit under this paragraph and maintained by the county 24   recorder, county treasurer, county assessor, city assessor, or 25   other government body is confidential information and shall 26   not be disseminated to any person unless otherwise ordered by 27   a court or released by the lawful custodian of the records 28   pursuant to state or federal law. The county recorder, county 29   treasurer, county assessor, city assessor, or other government 30   body responsible for maintaining the names and addresses 31   of individuals allowed a credit under this paragraph may 32   display such credit on individual paper records and individual 33   electronic records, including display on an internet site. 34   (b) Upon request, a county recorder, county assessor, city 35   -49-   LSB 2982XC (4) 91   jm/md   49/ 76  

  S.F. _____   assessor, or other entity may share information as described in 1   subparagraph division (a) to a county veterans service officer 2   for purposes of providing information on benefits and services 3   available to veterans and their families. 4   (6) (a) For an owner who makes an application to secure 5   the credit provided in this paragraph before July 1, 2025, 6   and for the beneficiary of such an owner, homestead shall 7   mean the same as defined in section 425.11 for each succeeding 8   assessment year. 9   (b) For an owner who makes an application to secure the 10   credit provided in this paragraph on or after July 1, 2025, and 11   for the beneficiary of such an owner, homestead shall mean the 12   same as provided in section 425.11, except the homestead shall 13   not include appurtenances and shall not exceed one-half acre. 14   (7) For purposes of this paragraph, permanent and total 15   disability rating based on individual unemployability means 16   a condition under which a person has either a permanent 17   service-connected disability rating of sixty percent or two or 18   more permanent service-connected disability conditions in which 19   one of the conditions has at least a forty percent rating and 20   the combined rating for all the conditions is at least seventy 21   percent, and the person has an administrative adjustment added 22   to the service-connected disability rating, due to individual 23   unemployability, such that the United States department of 24   veterans affairs rates the veteran permanently and totally 25   disabled for purposes of disability compensation. 26   c. (1) For assessment years beginning prior to January 27   1, 2025, unless eligible under section 425.15, Code 2025, an 28   amount equal to the actual levy on the first four thousand 29   eight hundred fifty dollars of actual value for each homestead. 30   (2) For the assessment year beginning January 1, 2025, 31   and each assessment year thereafter, unless eligible under 32   paragraph b , zero. 33   Sec. 65. Section 425.1A, subsection 1, Code 2025, is amended   34   to read as follows: 35   -50-   LSB 2982XC (4) 91   jm/md   50/ 76  

  S.F. _____   1. The following exemptions from taxation shall be allowed 1   in addition to the homestead credit   exemption under subsection 2   1A for an owner that has attained the age of sixty-five years 3   by January 1 of the assessment year: 4   a. For the assessment year beginning January 1, 2023, the 5   eligible homestead, not to exceed three thousand two hundred 6   fifty dollars in taxable value. 7   b. For the assessment year years beginning on or after 8   January 1, 2024, and each succeeding assessment year,   the 9   eligible homestead, not to exceed six thousand five hundred 10   dollars in taxable value. 11   Sec. 66. Section 425.1A, Code 2025, is amended by adding the 12   following new subsection: 13   NEW SUBSECTION   . 1A. For each assessment year beginning 14   on or after January 1, 2025, an exemption from taxation of 15   fifty thousand dollars in taxable value shall be allowed on 16   each eligible homestead in addition to the exemption under 17   subsection 1, if applicable. 18   Sec. 67. Section 425.2, subsections 1 and 2, Code 2025, are 19   amended to read as follows: 20   1. A person who wishes to qualify for the homestead credit 21   or exemption   allowed under this subchapter shall obtain the 22   appropriate forms for filing for the credit   from the assessor. 23   The forms shall include the ability to claim the credit under 24   section 425.1 and the exemptions under section 425.1A. 25   However, a separate form shall be required for claiming a 26   credit under section 425.1, subsection 2, paragraph b . The 27   person claiming the credit or exemption shall file a verified 28   statement and designation of homestead with the assessor for 29   the year for which the person is first claiming the credit 30   or exemption   . The claim shall be filed not later than July 31   1 of the year for which the person is claiming the credit or   32   exemption . A claim filed after July 1 of the year for which the 33   person is claiming the credit or exemption   shall be considered 34   as a claim filed for the following year. 35   -51-   LSB 2982XC (4) 91   jm/md   51/ 76                        

  S.F. _____   2. Upon the filing and allowance of the claim, the claim 1   shall be allowed on that homestead for successive years without 2   further filing as long as the property is legally or equitably 3   owned and used as a homestead by that person or that persons 4   spouse on July 1 of each of those successive years, and the 5   owner of the property being claimed as a homestead declares 6   residency in Iowa for purposes of income taxation, and the 7   property is occupied by that person or that persons spouse 8   for at least six months in each of those calendar years in 9   which the fiscal year begins. When the property is sold or 10   transferred, the buyer or transferee who wishes to qualify 11   shall refile for the credit or exemption   . However, when the 12   property is transferred as part of a distribution made pursuant 13   to chapter 598 , the transferee who is the spouse retaining 14   ownership of the property is not required to refile for the 15   credit or exemption   . Property divided pursuant to chapter 598 16   shall not be modified following the division of the property. 17   An owner who ceases to use a property for a homestead or 18   intends not to use it as a homestead for at least six months in 19   a calendar year shall provide written notice to the assessor 20   by July 1 following the date on which the use is changed. A 21   person who sells or transfers a homestead or the personal 22   representative of a deceased person who had a homestead at the 23   time of death, shall provide written notice to the assessor 24   that the property is no longer the homestead of the former 25   claimant. 26   Sec. 68. Section 425.2, subsection 4, Code 2025, is amended   27   by striking the subsection. 28   Sec. 69. Section 425.2, subsections 5 and 6, Code 2025, are   29   amended to read as follows: 30   5. Any person sixty-five years of age or older or any person 31   who is disabled may request, in writing, from the appropriate 32   assessor forms for filing for homestead tax credit   . Any 33   person sixty-five years of age or older or who is disabled 34   may complete the form, which shall include a statement of 35   -52-   LSB 2982XC (4) 91   jm/md   52/ 76     

  S.F. _____   homestead, and mail or return it to the appropriate assessor. 1   The signature of the claimant on the statement shall be 2   considered the claimants acknowledgment that all statements 3   and facts entered on the form are correct to the best of the 4   claimants knowledge. 5   6. Upon adoption of a resolution by the county board 6   of supervisors, any person may request, in writing, from 7   the appropriate assessor forms for the filing for homestead   8   tax credit   . The person may complete the form, which shall 9   include a statement of homestead, and mail or return it to 10   the appropriate assessor. The signature of the claimant on 11   the statement of homestead shall be considered the claimants 12   acknowledgment that all statements and facts entered on the 13   form are correct to the best of the claimants knowledge. 14   Sec. 70. Section 425.8, subsection 1, Code 2025, is amended 15   to read as follows: 16   1. The director of revenue shall prescribe the form 17   for the making of a verified statement and designation of 18   homestead, the form for the supporting affidavits required 19   herein, and such other forms as may be necessary for the proper 20   administration of this subchapter . Whenever necessary, the 21   department of revenue shall forward to the county auditors of 22   the several counties in the state the prescribed sample forms, 23   and the county auditors shall furnish blank forms prepared in 24   accordance therewith with the assessment rolls, books, and 25   supplies delivered to the assessors. The department of revenue 26   shall prescribe and the county auditors shall provide on the 27   forms for claiming the homestead credit   a statement to the 28   effect that the owner realizes that the owner must give written 29   notice to the assessor when the owner changes the use of the 30   property. 31   Sec. 71. Section 425.11, subsection 1, paragraph d, 32   subparagraph (1), unnumbered paragraph 1, Code 2025, is amended 33   to read as follows: 34   The homestead includes the dwelling house which the owner, 35   -53-   LSB 2982XC (4) 91   jm/md   53/ 76     

  S.F. _____   in good faith, is occupying as a home on July 1 of the year for 1   which the credit or exemption   is claimed and occupies as a home 2   for at least six months during the calendar year in which the 3   fiscal year begins, except as otherwise provided. 4   Sec. 72. Section 425.11, subsection 1, paragraph d, 5   subparagraph (3), Code 2025, is amended to read as follows: 6   (3) It must not embrace more than one dwelling house, but 7   where a homestead has more than one dwelling house situated 8   thereon, the exemption and   or credit provided for in this 9   subchapter shall apply to the home and buildings used by the 10   owner, but shall not apply to any other dwelling house and 11   buildings appurtenant. 12   Sec. 73. Section 425.11, subsection 1, paragraph e, 13   subparagraph (2), Code 2025, is amended to read as follows: 14   (2) For the purpose of this subchapter , the word owner 15   shall be construed to mean a bona fide owner and not one for 16   the purpose only of availing the person of the benefits of this 17   subchapter . In order to qualify for the homestead tax credit 18   and   or exemption, evidence of ownership shall be on file in the 19   office of the clerk of the district court or recorded in the 20   office of the county recorder at the time the owner files with 21   the assessor a verified statement of the homestead claimed by 22   the owner as provided in section 425.2 . 23   Sec. 74. Section 483A.24, subsection 19, Code 2025, is 24   amended to read as follows: 25   19. Upon payment of a fee established by rules adopted 26   pursuant to section 483A.1 for a lifetime trout fishing 27   license, the department shall issue a lifetime trout fishing 28   license to a person who is at least sixty-five years of age or 29   to a person who qualifies for the disabled veteran homestead 30   credit under section 425.15   425.1, subsection 2, paragraph b . 31   The department shall prepare an application to be used by a 32   person requesting a lifetime trout fishing license under this 33   subsection .   34   Sec. 75. REPEAL. Section 425.15, Code 2025, is repealed. 35   -54-   LSB 2982XC (4) 91   jm/md   54/ 76          

  S.F. _____   Sec. 76. IMPLEMENTATION. Homestead owners who have filed 1   for or that are receiving homestead credits or exemptions under 2   chapter 425, subchapter I, before the effective date of this 3   division of this Act shall continue to receive such credits and 4   exemptions for which the owner is eligible for assessment years 5   beginning on or after January 1, 2025, without refiling, and, 6   if the owner is eligible, shall receive the exemption under 7   section 425.1A, subsection 1A, as enacted in this division of 8   this Act, without filing for such exemption. 9   Sec. 77. RETROACTIVE APPLICABILITY. This division of this 10   Act applies retroactively to assessment years beginning on or 11   after January 1, 2025. 12   DIVISION VI 13   MILITARY SERVICE PROPERTY TAX EXEMPTION 14   Sec. 78. Section 426A.11, subsection 2, Code 2025, is 15   amended to read as follows: 16   2. a. The property, not to exceed one thousand eight 17   hundred fifty-two dollars in taxable value for assessment years 18   beginning before January 1, 2023, of an honorably separated, 19   retired, furloughed to a reserve, placed on inactive status, 20   or discharged veteran, as defined in section 35.1, subsection 21   2 , paragraph a or b . 22   b. The property, not to exceed four thousand dollars in 23   taxable value for the assessment years beginning on or after 24   January 1, 2023, but before January 1, 2025,   of an honorably 25   separated, retired, furloughed to a reserve, placed on inactive 26   status, or discharged veteran, as defined in section 35.1, 27   subsection 2 , paragraph a or b . 28   c.   The property, not to exceed the following amounts in 29   taxable value, of an honorably separated, retired, furloughed   30   to a reserve, placed on inactive status, or discharged veteran, 31   as defined in section 35.1, subsection 2, paragraph   a or b : 32   (1) Five thousand dollars in taxable value for the 33   assessment year beginning January 1, 2025.   34   (2) Six thousand dollars in taxable value for the assessment 35   -55-   LSB 2982XC (4) 91   jm/md   55/ 76                    

  S.F. _____   year beginning January 1, 2026. 1   (3)   Seven thousand dollars in taxable value for assessment 2   years beginning on or after January 1, 2027. 3   Sec. 79. RETROACTIVE APPLICABILITY. This division of this 4   Act applies retroactively to January 1, 2025, for assessment 5   years beginning on or after that date. 6   DIVISION VII 7   HOSPITAL AND EMERGENCY MEDICAL SERVICES PROPERTY TAX LEVIES 8   Sec. 80. Section 347.7, Code 2025, is amended by adding the 9   following new subsection: 10   NEW SUBSECTION   . 3A. a. For fiscal years beginning on 11   or after July 1, 2026, any property tax levy imposed for a 12   county hospital under this chapter that is limited by law to 13   a specific property tax levy rate per one thousand dollars of 14   assessed value shall not exceed a levy rate per one thousand 15   dollars of assessed value that is equal to one thousand 16   multiplied by the quotient obtained by dividing the product of 17   the budget adjustment factor multiplied by the current fiscal 18   years actual property tax dollars certified for such levy by 19   the remainder of the total assessed value used to calculate 20   such taxes for the budget year minus value attributable to new 21   valuation. 22   b. For purposes of this subsection, budget adjustment 23   factor , budget year , and current fiscal year mean the same 24   as defined in section 331.423. 25   Sec. 81. Section 347A.3, Code 2025, is amended by adding the 26   following new subsection: 27   NEW SUBSECTION   . 3. a. For fiscal years beginning on 28   or after July 1, 2026, any property tax levy imposed for a 29   county hospital under this chapter that is limited by law to 30   a specific property tax levy rate per one thousand dollars of 31   assessed value shall not exceed a levy rate per one thousand 32   dollars of assessed value that is equal to one thousand 33   multiplied by the quotient obtained by dividing the product of 34   the budget adjustment factor multiplied by the current fiscal 35   -56-   LSB 2982XC (4) 91   jm/md   56/ 76         

  S.F. _____   years actual property tax dollars certified for such levy by 1   the remainder of the total assessed value used to calculate 2   such taxes for the budget year minus value attributable to new 3   valuation. 4   b. For purposes of this subsection, budget adjustment 5   factor , budget year , and current fiscal year mean the same 6   as defined in section 331.423. 7   Sec. 82. Section 357F.8, Code 2025, is amended by adding the 8   following new subsection: 9   NEW SUBSECTION   . 3. a. For fiscal years beginning on 10   or after July 1, 2026, any property tax levy imposed for 11   the district under this chapter that is limited by law to a 12   specific property tax levy rate per one thousand dollars of 13   assessed value shall not exceed a levy rate per one thousand 14   dollars of assessed value that is equal to one thousand 15   multiplied by the quotient obtained by dividing the product of 16   the budget adjustment factor multiplied by the current fiscal 17   years actual property tax dollars certified for such levy by 18   the remainder of the total assessed value used to calculate 19   such taxes for the budget year minus value attributable to new 20   valuation. 21   b. For purposes of this subsection, budget adjustment 22   factor , budget year , and current fiscal year mean the same 23   as defined in section 331.423. 24   Sec. 83. Section 357G.8, Code 2025, is amended by adding the 25   following new subsection: 26   NEW SUBSECTION   . 3. a. For fiscal years beginning on 27   or after July 1, 2026, any property tax levy imposed for 28   the district under this chapter that is limited by law to a 29   specific property tax levy rate per one thousand dollars of 30   assessed value shall not exceed a levy rate per one thousand 31   dollars of assessed value that is equal to one thousand 32   multiplied by the quotient obtained by dividing the product of 33   the budget adjustment factor multiplied by the current fiscal 34   years actual property tax dollars certified for such levy by 35   -57-   LSB 2982XC (4) 91   jm/md   57/ 76    

  S.F. _____   the remainder of the total assessed value used to calculate 1   such taxes for the budget year minus value attributable to new 2   valuation. 3   b. For purposes of this subsection, budget adjustment 4   factor , budget year , and current fiscal year mean the same 5   as defined in section 384.1. 6   Sec. 84. NEW SECTION   . 422D.5A Levy limitation. 7   1. For fiscal years beginning on or after July 1, 2026, any 8   property tax levy imposed under this chapter that is limited 9   by law to a specific property tax levy rate per one thousand 10   dollars of assessed value shall not exceed a levy rate per 11   one thousand dollars of assessed value that is equal to one 12   thousand multiplied by the quotient obtained by dividing the 13   product of the budget adjustment factor multiplied by the 14   current fiscal years actual property tax dollars certified 15   for such levy by the remainder of the total assessed value 16   used to calculate such taxes for the budget year minus value 17   attributable to new valuation. 18   2. For purposes of this section, budget adjustment factor , 19   budget year , and current fiscal year mean the same as 20   defined in section 331.423. 21   DIVISION VIII 22   PROPERTY TAX LEVY RATES 23   Sec. 85. Section 176A.10, subsection 1, paragraphs a, b, c, 24   d, and e, Code 2025, are amended by striking the paragraphs and 25   inserting in lieu thereof the following: 26   a. For an extension district having a population of less 27   than thirty thousand, an annual levy of fifteen cents per 28   thousand dollars of the assessed valuation of the taxable 29   property in the district up to a maximum of two hundred 30   ninety-one thousand dollars payable during the fiscal year 31   commencing July 1, 2026, and an increase of six thousand 32   dollars in the amount payable during each subsequent fiscal 33   year. 34   b. For an extension district having a population of thirty 35   -58-   LSB 2982XC (4) 91   jm/md   58/ 76   

  S.F. _____   thousand or more but less than fifty thousand, an annual 1   levy of ten and one-eighth cents per thousand dollars of the 2   assessed valuation of the taxable property in the district 3   up to a maximum of three hundred forty-two thousand dollars 4   payable during the fiscal year commencing July 1, 2026, and an 5   increase of seven thousand dollars in the amount payable during 6   each subsequent fiscal year. 7   c. For an extension district having a population of fifty 8   thousand or more but less than ninety thousand, an annual levy 9   of six and three-fourths cents per thousand dollars of the 10   assessed valuation of the taxable property in the district up 11   to a maximum of four hundred thirty-six thousand five hundred 12   dollars payable during the fiscal year commencing July 1, 2026, 13   and an increase of nine thousand dollars in the amount payable 14   during each subsequent fiscal year. 15   d. For an extension district having a population of ninety 16   thousand or more but less than two hundred thousand, an annual 17   levy of six and three-fourths cents per thousand dollars of 18   the assessed valuation of the taxable property in the district 19   up to a maximum of six hundred ninety thousand dollars payable 20   during the fiscal year commencing July 1, 2026, and an increase 21   of fifteen thousand dollars in the amount payable during each 22   subsequent fiscal year. 23   e. For an extension district having a population of two 24   hundred thousand or more, an annual levy of two and one-half 25   cents per thousand dollars of the assessed valuation of 26   the taxable property in the district up to a maximum of one 27   million fifty thousand dollars payable during the fiscal 28   year commencing July 1, 2026, and an increase of twenty-five 29   thousand dollars in the amount payable during each subsequent 30   fiscal year. 31   Sec. 86. Section 176A.10, subsection 2, Code 2025, is   32   amended by striking the subsection. 33   Sec. 87. Section 312.2, subsection 5, paragraph a, Code 34   2025, is amended to read as follows:   35   -59-   LSB 2982XC (4) 91   jm/md   59/ 76  

  S.F. _____   a. The treasurer of state, before making any allotments 1   to counties under this section , shall reduce the allotment to 2   a county for the secondary road fund by the amount by which 3   the total funds that the county transferred or provided during 4   the prior fiscal year under section 331.429, subsection 1 , 5   paragraphs a , b , d , and e , are less than seventy-five   6   fifty-one percent of the sum of the following: 7   (1) From the general fund of the county, the dollar 8   equivalent of a tax of sixteen and seven-eighths   eight and 9   seven-sixteenths cents per thousand dollars of assessed value 10   on all taxable property in the county. 11   (2) From the rural services fund of the county, the 12   dollar equivalent of a tax of three dollars   one dollar and 13   three-eighths   fifty and three-sixteenths of a cent per thousand 14   dollars of assessed value on all taxable property not located 15   within the corporate limits of a city in the county. 16   Sec. 88. NEW SECTION . 444.25 Maximum property tax levy 17   rates  adjustments. 18   1. For purposes of this section: 19   a. Budget year is the fiscal year beginning during the 20   calendar year in which a budget is certified. 21   b. Current fiscal year is the fiscal year ending during 22   the calendar year in which a budget for the budget year is 23   certified. 24   c. Rate-limited property tax levy includes any ad valorem 25   property tax levy limited by law to a specific property tax 26   levy rate per one thousand dollars of assessed value used to 27   calculate taxes, but does not include the school district   28   foundation levy under section 257.3, the county general 29   services levy under section 331.423, subsection 1, the county 30   rural services levy under section 331.423, subsection 2, the 31   city general fund levy under section 384.1, subsection 3, the 32   physical plant and equipment levies under section 298.2, the 33   school district bond tax under section 298.18, any levy under 34   chapter 347 or 347A, and any levy under chapter 357F, 357G, 35   -60-   LSB 2982XC (4) 91   jm/md   60/ 76            

  S.F. _____   or 422D. In addition, rate-limited property tax levy does 1   not include levy rates used in the calculations under section 2   312.2, subsection 5, paragraph a . 3   2. For the fiscal year beginning July 1, 2026, each 4   rate-limited property tax levy may only be imposed if the 5   governmental entity imposed such levy for the fiscal year 6   beginning July 1, 2025, and shall, by operation of this 7   section, be limited to a levy rate per one thousand dollars 8   of assessed value that is equal to one thousand multiplied by 9   the quotient of one hundred two percent of the current fiscal 10   years actual property tax dollars certified for such levy 11   divided by the total assessed value used to calculate such 12   taxes for the budget year, but not less than a levy rate per one 13   thousand dollars of assessed value that results in an amount 14   of actual property tax dollars certified for levy for such 15   levy equal to one hundred and one-half percent of the actual 16   property tax dollars certified for such levy for the fiscal 17   year beginning July 1, 2025. 18   3. For the fiscal year beginning July 1, 2027, and each 19   fiscal year thereafter, rate-limited property tax levies may 20   be imposed by any governmental entity otherwise authorized by 21   law, regardless of whether the governmental entity imposed the 22   levy for the fiscal year beginning July 1, 2025, at rates not 23   to exceed those established by the general assembly by statute 24   following receipt and consideration of the report submitted by 25   the legislative interim committee requested to be established 26   by the legislative council in this division of this Act. 27   Sec. 89. NEW SECTION   . 444.26 Use of bonds and indebtedness   28   for general operations  prohibition. 29   1. For purposes of this section, general operations means 30   services or activities generally funded from the governmental 31   entitys general fund, which are necessary for the operation 32   of the governmental entity, including salaries and benefits, 33   or which are for the health and welfare of the governmental 34   entitys citizens or primarily intended to benefit all 35   -61-   LSB 2982XC (4) 91   jm/md   61/ 76   

  S.F. _____   residents of the governmental entity, but excluding services 1   financed by statutory funds other than a debt service fund. 2   2. On or after July 1, 2025, a city or county shall not 3   issue bonds or other indebtedness payable from an ad valorem 4   property tax levy for the purpose of funding the general 5   operations of the city or general operations of the county, as 6   applicable, or otherwise use proceeds from the sale of bonds or 7   issuance of other indebtedness to fund general operations. 8   3. The city finance committee shall adopt rules under 9   chapter 17A for cities to implement this section. The county 10   finance committee shall adopt rules under chapter 17A for 11   counties to implement this section. 12   Sec. 90. PROPERTY TAXATION RATES  STUDY COMMITTEE. 13   1. a. The legislative council is requested to establish a 14   legislative study committee during the 2025 legislative interim 15   to examine appropriate rates of property taxation imposed by 16   governmental entities following the adjustments to assessment 17   limitations and levy rate limitations made in this Act. 18   b. The study committee shall consist of the following voting 19   members of the general assembly: 20   (1) Two members of the senate appointed by the majority 21   leader of the senate. 22   (2) One member of the senate appointed by the minority 23   leader of the senate. 24   (3) Two members of the house of representatives appointed by 25   the speaker of the house of representatives. 26   (4) One member of the house of representatives appointed by 27   the minority leader of the house of representatives. 28   2. The committee shall make recommendations to and file a 29   report with the general assembly relating to the appropriate 30   rates of property taxation imposed by governmental entities 31   following enactment of this Act, no later than January 15, 32   2026. 33   Sec. 91. EFFECTIVE DATE. The following take effect January 34   1, 2026: 35   -62-   LSB 2982XC (4) 91   jm/md   62/ 76  

  S.F. _____   1. The sections of this division of this Act amending 1   section 176A.10. 2   2. The section of this division of this Act amending section 3   312.2. 4   Sec. 92. APPLICABILITY. The following apply to fiscal years 5   beginning on or after July 1, 2026: 6   1. The sections of this division of this Act amending 7   section 176A.10. 8   2. The section of this division of this Act amending section 9   312.2. 10   DIVISION IX 11   ELDERLY PROPERTY TAXES  LOW INCOME 12   Sec. 93. Section 425.17, subsection 2, paragraph a, 13   subparagraph (3), Code 2025, is amended to read as follows: 14   (3) A person filing a claim for credit under this subchapter 15   who has attained the age of seventy years on or before December 16   31 of the base year, who has a household income of less than two   17   three   hundred fifty percent of the federal poverty level, as 18   defined by the most recently revised poverty income guidelines 19   published by the United States department of health and human 20   services, and is domiciled in this state at the time the claim 21   is filed or at the time of the persons death in the case of a 22   claim filed by the executor or administrator of the claimants 23   estate. 24   Sec. 94. APPLICABILITY. This division of this Act applies 25   to assessment years beginning on or after January 1, 2026. 26   DIVISION X   27   BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND  LEVY   28   Sec. 95. Section 165.18, subsections 2 and 3, Code 2025, are   29   amended by striking the subsections. 30   Sec. 96. Section 331.512, subsection 1, paragraph e, Code 31   2025, is amended by striking the paragraph. 32   Sec. 97. Section 331.559, subsection 2, Code 2025, is 33   amended by striking the subsection. 34   Sec. 98. EFFECTIVE DATE. This division of this Act takes 35   -63-   LSB 2982XC (4) 91   jm/md   63/ 76    

  S.F. _____   effect upon enactment. 1   Sec. 99. APPLICABILITY. This division of this Act applies 2   to property taxes due and payable in fiscal years beginning on 3   or after July 1, 2025. 4   EXPLANATION 5   The inclusion of this explanation does not constitute agreement with 6   the explanations substance by the members of the general assembly. 7   This bill relates to local government property taxes, 8   financial authority, and budgets. 9   DIVISION I  COUNTY PROPERTY TAXES AND BUDGETS. Code 10   section 331.423 establishes a levy rate limitation for the 11   general county services levy and a limitation for the rural 12   county services levy. The bill modifies the general county 13   services levy rate limitation for the fiscal year beginning 14   July 1, 2026, to be a levy rate not to exceed the greater of: 15   (1) a levy rate per $1,000 of assessed value equal to 1,000 16   multiplied by the quotient of 102 percent of the current fiscal 17   years (immediately preceding fiscal year) actual property tax 18   dollars certified for levy for general county services divided 19   by the remainder of the total assessed value used to calculate 20   such taxes for the budget year minus value attributable to new 21   valuation, as defined in the bill; and (2) a levy rate per 22   $1,000 of assessed value that results in an amount of actual 23   property tax dollars certified for levy for general county 24   services equal to 100.5 percent of the actual property tax 25   dollars certified for such levy for the current fiscal year. 26   For each fiscal year beginning on or after July 1, 2027, 27   the maximum levy rate is the levy rate imposed by the county 28   for the current fiscal year unless the total assessed value, 29   excluding new valuation, used to calculate taxes for general 30   county services for the budget year is equal to or exceeds 102 31   percent of the total assessed value used to calculate taxes for 32   general county services for the current fiscal year, and for 33   the budget year beginning July 1, 2027, only, not less than 34   a levy rate per $1,000 of assessed value that results in an 35   -64-   LSB 2982XC (4) 91   jm/md   64/ 76  

  S.F. _____   amount of actual property tax dollars certified for levy equal 1   to 100.5 percent of the actual property tax dollars certified 2   for levy for the current fiscal year. 3   If the total assessed value, excluding value attributable 4   to new valuation, used to calculate taxes for general county 5   services for the budget year is equal to or exceeds 102 percent 6   of the total assessed value used to calculate taxes for general 7   county services for the current fiscal year, the levy rate 8   imposed shall not exceed a levy rate per $1,000 of assessed 9   value that is equal to 1,000 multiplied by the quotient 10   obtained by dividing the product of the budget adjustment 11   factor, as defined in the bill and which ranges from 102 12   percent to 105 percent depending upon the amount of annual 13   increase in the consumer price index, multiplied by the current 14   fiscal years actual property tax dollars certified for levy 15   by the remainder of the total assessed value used to calculate 16   such taxes for the budget year minus value attributable to new 17   valuation. 18   The bill similarly modifies the maximum levy rate for rural 19   county services for fiscal years beginning on or after July 1, 20   2026. 21   The division takes effect January 1, 2026, and applies to 22   county taxes and budgets for fiscal years beginning on or after 23   July 1, 2026. 24   DIVISION II  CITY PROPERTY TAXES AND BUDGETS. Code 25   section 384.1 establishes the city general fund levy and limits 26   on the levy rate. The bill modifies the general fund levy 27   rate limitation for the fiscal year beginning July 1, 2026, 28   to be a levy rate not to exceed the greater of: (1) a levy 29   rate per $1,000 of assessed value equal to 1,000 multiplied 30   by the quotient of 102 percent of the current fiscal years 31   (immediately preceding fiscal year) actual property tax dollars 32   certified for levy divided by the remainder of the total 33   assessed value used to calculate such taxes for the budget year 34   minus value attributable to new valuation, as defined in the   35   -65-   LSB 2982XC (4) 91   jm/md   65/ 76  

  S.F. _____   bill; and (2) a levy rate per $1,000 of assessed value that 1   results in an amount of actual property tax dollars certified 2   for levy equal to 100.5 percent of the actual property tax 3   dollars certified for such levy for the current fiscal year. 4   For each fiscal year beginning on or after July 1, 2027, the 5   maximum levy rate is the levy rate imposed by the city for the 6   current fiscal year unless the total assessed value, excluding 7   new valuation, used to calculate taxes for the budget year is 8   equal to or exceeds 102 percent of the total assessed value 9   used to calculate taxes for the current fiscal year, and for 10   the budget year beginning July 1, 2027, only, not less than 11   a levy rate per $1,000 of assessed value that results in an 12   amount of actual property tax dollars certified for levy equal 13   to 100.5 percent of the actual property tax dollars certified 14   for levy for the current fiscal year. 15   If the total assessed value, excluding value attributable 16   to new valuation, used to calculate taxes for the city general 17   fund for the budget year is equal to or exceeds 102 percent 18   of the total assessed value used to calculate taxes for the 19   current fiscal year, the levy rate imposed shall not exceed a 20   levy rate per $1,000 of assessed value that is equal to 1,000 21   multiplied by the quotient obtained by dividing the product 22   of the budget adjustment factor, as defined in the bill and 23   which ranges from 102 percent to 105 percent depending upon 24   the amount of annual increase in the consumer price index, 25   multiplied by the current fiscal years actual property tax 26   dollars certified for levy by the remainder of the total 27   assessed value used to calculate such taxes for the budget year 28   minus value attributable to new valuation.   29   The bill also establishes a methodology to determine a 30   maximum levy rate for a city that is not imposing a general 31   fund levy in the current fiscal year. 32   The division takes effect January 1, 2026, and applies to 33   property taxes and budgets for fiscal years beginning on or 34   after July 1, 2026. 35   -66-   LSB 2982XC (4) 91   jm/md   66/ 76  

  S.F. _____   DIVISION III  SCHOOL TAXES AND BUDGETS. As part of 1   the state school foundation program, for school budget 2   years beginning on or after July 1, 2022, Code section 257.1 3   establishes the regular program foundation base to be 88.4 4   percent of the regular program state cost per pupil. Beginning 5   with the budget year beginning July 1, 2026, the bill increases 6   that percentage to 100 percent. Similarly, the bill increases 7   the special education support services foundation base 8   percentage from 79 percent to 100 percent. 9   Code section 257.3 requires school districts to levy a 10   foundation property tax of $5.40 per $1,000 of assessed value 11   on all taxable property in the school district. The bill 12   reduces the foundation property tax levy rate to $2.97 per 13   $1,000 of assessed value for budget years beginning on or after 14   July 1, 2026. 15   Code section 257.3 provides an exception to the foundation 16   property tax levy rate of $5.40 for those school districts that 17   have recently been reorganized. Such districts are provided 18   reduced foundation property tax levy rates for three years 19   following the reorganization. The bill adjusts those reduced 20   rates for reorganizations that take effect on or after July 21   1, 2026, to reflect the reduction made in the bill to the 22   foundation property tax levy imposed by school districts that 23   are not subject to a reorganization and eliminates certain 24   supplemental aid related to such reorganized school district 25   rates for budget years beginning on or after July 1, 2026. 26   The bill eliminates certain property tax adjustment aid 27   under Code section 257.15(2) and (3) for fiscal years beginning 28   on or after July 1, 2026. 29   The bill eliminates the $24 million general fund 30   appropriation for adjusted additional property tax levy aid 31   under Code section 257.15(4) for fiscal years beginning on 32   or after July 1, 2026. The bill also eliminates the annual 33   appropriation of the balance of the property tax equity and 34   relief fund under Code section 257.16A for purposes designated 35   -67-   LSB 2982XC (4) 91   jm/md   67/ 76  

  S.F. _____   under Code section 257.15(4) and requires remaining moneys at 1   the end of a specified fiscal year to be transferred back to 2   the funds from which they were received. 3   The bill eliminates the payment of school district property 4   tax replacement payments for fiscal years beginning on or after 5   July 1, 2026. 6   The bill eliminates the annual appropriation of moneys in 7   the foundation base supplement fund for fiscal years beginning 8   on or after July 1, 2026, and requires the remaining moneys 9   at the end of a specified fiscal year to be transferred for 10   deposit in the secure an advanced vision for education fund. 11   The bill eliminates transfers from the secure an advanced 12   vision for education fund to the property tax equity and relief 13   fund and the foundation base supplement fund for fiscal years 14   beginning on or after July 1, 2026. 15   In Code chapters 425A (family farm tax credit) and 426 16   (agricultural land tax credit), the bill replaces references 17   to the school foundation property tax levy rate ($5.40) with 18   citations to the appropriate provision of the Code section 19   establishing the foundation property tax rate. 20   The bill requires each school district with an unexpended 21   fund balance in the districts management levy fund under 22   Code section 298A.3 at the conclusion of the fiscal year 23   beginning July 1, 2024, that exceeds an amount equal to the 24   total expenditures from the districts management fund for the 25   fiscal year beginning July 1, 2024, to certify such unexpended 26   fund balance and expenditure amounts, including any reserved 27   or designated amounts in the fund and the purposes therefor, 28   to the school budget review committee by November 15, 2025. 29   The committee is then required to conduct a review of the 30   unexpended fund balances and expenditures of school district 31   management levy funds certified under the bill. By February 32   1, 2026, the committee shall make recommendations to the 33   general assembly for establishing district management levy fund 34   unexpended fund balance limitations for fiscal years beginning 35   -68-   LSB 2982XC (4) 91   jm/md   68/ 76  

  S.F. _____   on or after July 1, 2027, including recommendations for 1   limitations based on a percentage of the districts management 2   levy fund expenditures and recommendations for management levy 3   limitations and expenditure requirements for excess funds. 4   The bill amends several provisions relating to the state 5   school foundation program funding formula to include funding 6   for the media services funding and educational services funding 7   under Code section 257.37 to be included and funded as part of 8   foundation aid paid by the state instead of funding through a 9   school districts additional property tax under Code section 10   257.4 for school budget years beginning on or after July 1, 11   2026. 12   The bill reduces by 50 percent the maximum levy rates for 13   the regular and voter-approved physical plant and equipment 14   levy under Code section 298.2 and the school district bond tax 15   under Code section 298.18. The bill also repeals an obsolete 16   provision relating to levy adjustments authorized to occur 17   before June 30, 2007, in Code section 298.18A. 18   The bill also amends Code section 298.4 by providing that for 19   fiscal years beginning on or after July 1, 2027, if a school 20   districts unexpended fund balance of the districts management 21   levy fund is equal to or exceeds a specified percentage of the 22   average annual expenditures from the districts management 23   levy fund for the three consecutive fiscal years immediately 24   preceding the base year, the board of directors may not certify 25   a district management levy for the fiscal year. Additionally, 26   if a school district is not prohibited from certifying a levy 27   under the bill, the maximum amount that the board of directors   28   may certify for levy under the district management levy shall 29   be an amount equal to the remainder of a specified percentage 30   of the average annual expenditures from the districts 31   management levy fund for the three consecutive fiscal years 32   immediately preceding the base year minus the districts 33   management levy fund unexpended fund balance for the fiscal 34   year preceding the base year. 35   -69-   LSB 2982XC (4) 91   jm/md   69/ 76  

  S.F. _____   Except for the section of the division amending Code section 1   257.31, which relates to the school budget review committee, 2   this division of the bill takes effect January 1, 2026, and 3   applies to fiscal years and school budget years beginning on 4   or after July 1, 2026. 5   DIVISION IV  PROPERTY VALUATIONS AND ASSESSMENT 6   LIMITATIONS. Code section 441.21 provides that the actual 7   value of agricultural property shall be determined on the 8   basis of productivity and net earning capacity and that any 9   formula or method employed to determine productivity and net 10   earning capacity of property shall be adopted in full by rule 11   of the department of revenue. The bill amends that provision 12   by specifying that for assessment years beginning on or after 13   January 1, 2026, structures on agricultural land constructed on 14   or after January 1, 2026, that are not agricultural dwellings 15   shall not be included in determination of productivity and 16   net earning capacity of agricultural property and shall not 17   be allocated any portion of the total county productivity 18   value so determined. Such agricultural structures shall 19   instead be valued according to the structures replacement 20   cost less depreciation and obsolescence and the structures 21   assessed value subject to taxation prior to application of 22   any assessment limitation shall be equal to the product of 23   the structures value multiplied by the agricultural factor, 24   as determined in 701 IAC 102.3(2) or succeeding rule of the 25   department. The bill also provides that such structures shall 26   be treated similarly to agricultural structures constructed 27   before January 1, 2026, when applying any equalization order 28   of the department of revenue. 29   The bill modifies the list of examples of abnormal property 30   transactions that are to be excluded from consideration or 31   adjusted to eliminate distortions of market value when valuing 32   property to include built-to-suit construction, sale-leaseback 33   transactions, leased fee sales, and instead of sales to   34   immediate family, sales between related parties. 35   -70-   LSB 2982XC (4) 91   jm/md   70/ 76  

  S.F. _____   Code section 441.21(4) establishes the calculation for 1   assessment limitations (rollback) for residential property and 2   agricultural property. The bill strikes the calculation of 3   the residential property assessment limitation for assessment 4   years beginning on or after January 1, 2025, and strikes 5   the provision within the agricultural property assessment 6   limitation calculation that limits growth of residential or 7   agricultural property to the growth in the other classification 8   (ag-residential tie). The bill provides that residential 9   property is assessed at 100 percent of the propertys actual 10   value for assessment years beginning on or after January 1, 11   2025. By operation of law and through changes in the bill, 12   all other classifications of property, except for agricultural 13   property, are assessed at 100 percent of actual value for 14   assessment years beginning on or after January 1, 2025. 15   The bill modifies provisions governing the calculation 16   of payments made to local governments under Code section 17   441.21(5)(e) that are made to replace property taxes due to the 18   application of the residential property assessment limitation 19   to certain portions of commercial and industrial property 20   valuations and eliminates the appropriation for such payments 21   for fiscal years beginning on or after July 1, 2026, due to 22   elimination of the assessment limitations. 23   The bill also reestablishes a multiresidential property 24   classification for assessment years beginning on or after 25   January 1, 2025, that includes types of property that were 26   classified as multiresidential property for assessment years 27   beginning before January 1, 2022. Such property is included 28   within the residential property classification under current 29   law. Under the bill, for purposes of equalization under Code 30   sections 441.47 through 441.49, multiresidential property shall 31   be considered residential property. 32   This division of the bill applies retroactively to 33   assessment years beginning on or after January 1, 2025. 34   DIVISION V  DISABLED VETERAN AND HOMESTEAD CREDITS AND   35   -71-   LSB 2982XC (4) 91   jm/md   71/ 76  

  S.F. _____   EXEMPTIONS. Starting with the assessment year beginning 1   January 1, 2025, the bill replaces the homestead property 2   tax credit, other than the portion of the credit provided 3   to certain disabled veterans, with a homestead property tax 4   exemption. For assessment years beginning on or after January 5   1, 2025, the exemption amount is $50,000 in taxable value. The 6   bill specifies that the elderly homestead exemption of $6,500 7   in taxable value applies in addition to the $50,000 homestead 8   exemption established in the bill. 9   The bill moves the disabled veteran homestead credit from 10   Code section 425.15 to Code section 425.1, and makes changes 11   to the scope of the disabled veteran homestead credit for new 12   applicants. Currently, a disabled veteran with a 100 percent 13   permanent and total disability rating receives a homestead 14   credit on the entire amount of tax levied on the homestead. 15   The bill specifies that a separate application form is required 16   to claim the disabled veteran homestead credit. The bill 17   does not change the homestead credit for an eligible disabled 18   veteran who makes an application for the homestead credit 19   before July 1, 2025. For a disabled veteran who makes an 20   application for the homestead credit on or after July 1, 2025, 21   the bill changes the definition of homestead to exclude 22   appurtenances and limits the size of the homestead credit to 23   property on one-half acre. 24   The state continues to reimburse local governments for the 25   homestead credit, which for assessment years beginning on or 26   after January 1, 2025, includes only the disabled veterans 27   homestead credit, but does not reimburse local governments for 28   the homestead exemption under current law and in the bill. 29   The bill provides that homestead owners who have filed for 30   or who are receiving homestead credits or exemptions before 31   the effective date of this division of the bill shall continue   32   to receive such credits and exemptions for which the owner is 33   eligible for assessment years beginning on or after January 34   1, 2025, without refiling, and, if the owner is eligible, 35   -72-   LSB 2982XC (4) 91   jm/md   72/ 76  

  S.F. _____   shall receive the exemption under Code section 425.1A(1A), as 1   enacted in this division of the bill, without filing for such 2   exemption. 3   This division of the bill applies retroactively to 4   assessment years beginning on or after January 1, 2025. 5   DIVISION VI  MILITARY SERVICE PROPERTY TAX EXEMPTION. 6   Under current law, a veteran receives a property tax exemption 7   of $4,000 in taxable value on property owned by the veteran. 8   The bill increases the veterans property tax exemption from 9   $4,000 to the following exemption amounts: for the assessment 10   year beginning January 1, 2025, $5,000; for the assessment year 11   beginning January 1, 2026, $6,000; and for assessment years 12   beginning on or after January 1, 2027, $7,000. 13   The division applies retroactively to assessment years 14   beginning on or after January 1, 2025. 15   DIVISION VII  HOSPITAL AND EMERGENCY MEDICAL SERVICES 16   PROPERTY TAX LEVIES. The bill provides that for fiscal years 17   beginning on or after July 1, 2026, any property tax levy 18   imposed for a county hospital under Code chapter 347 that 19   is limited by law to a specific property tax levy rate per 20   $1,000 of assessed value shall not exceed a levy rate per 21   $1,000 of assessed value that is equal to 1,000 multiplied by 22   the quotient obtained by dividing the product of the budget 23   adjustment factor multiplied by the current fiscal years 24   actual property tax dollars certified for such levy by the 25   remainder of the total assessed value used to calculate such 26   taxes for the budget year minus value attributable to new 27   valuation. The bill defines budget adjustment factor, 28   budget year, and current fiscal year to mean the same as 29   defined in Code section 331.423, as amended in the bill.   30   The bill establishes similar limitations for levies imposed 31   under Code chapters 347A (county hospitals payable from 32   revenue), 357F (emergency medical services districts), 357G 33   (city emergency medical services districts), and 422D (optional 34   taxes for emergency medical services) that are limited by law 35   -73-   LSB 2982XC (4) 91   jm/md   73/ 76  

  S.F. _____   to a specific property tax levy rate per $1,000 of assessed 1   value. 2   DIVISION VIII  PROPERTY TAX LEVY RATES. The bill 3   establishes a reduction for rate-limited property tax levies. 4   The bill defines rate-limited property tax levy to be any ad 5   valorem property tax levy limited by law to a specific property 6   tax levy rate per $1,000 of assessed value used to calculate 7   taxes, but does not include the school district foundation 8   levy under Code section 257.3, the county general services 9   levy under Code section 331.423(1), the county rural services 10   levy under Code section 331.423(2), the city general fund levy 11   under Code section 384.1(3), the physical plant and equipment 12   levies under Code section 298.2, the school district bond 13   tax under Code section 298.18, any levy under Code chapter 14   347 or 347A, and any levy under Code chapter 357F, 357G, or 15   422D. In addition, rate-limited property tax levy does not 16   include levy rates used in the calculations under Code section 17   312.2(5)(a). 18   For the fiscal year beginning July 1, 2026, each 19   rate-limited property tax levy may only be imposed if the 20   governmental entity imposed such levy for the fiscal year 21   beginning July 1, 2025, and shall, by operation of the bill, 22   be limited to a levy rate that is equal to 1,000 multiplied 23   by the quotient of 102 percent of the current fiscal years 24   actual property tax dollars certified for such levy divided 25   by the total assessed value used to calculate such taxes for 26   the budget year, but not less than a levy rate per $1,000 of 27   assessed value that results in an amount of actual property tax 28   dollars certified for levy for such levy equal to 100.5 percent 29   of the actual property tax dollars certified for such levy for 30   the fiscal year beginning July 1, 2025. 31   For the fiscal year beginning July 1, 2027, and each fiscal 32   year thereafter, rate-limited property tax levies may be 33   imposed by any governmental entity otherwise authorized by law, 34   regardless of whether the governmental entity imposed the levy 35   -74-   LSB 2982XC (4) 91   jm/md   74/ 76  

  S.F. _____   for the fiscal year beginning July 1, 2025, at rates not to 1   exceed those established by the general assembly by statute 2   following receipt and consideration of the report submitted by 3   the legislative interim committee requested to be established 4   by the legislative council in this division of the bill. 5   The bill also provides that, on or after July 1, 2025, a city 6   or county shall not issue bonds or other indebtedness payable 7   from an ad valorem property tax levy for the purpose of funding 8   the general operations of the city or general operations of 9   the county, as applicable, or otherwise use proceeds from the 10   sale of bonds or issuance of other indebtedness to fund general 11   operations. The bill defines general operations to mean 12   services or activities generally funded from the governmental 13   entitys general fund, which are necessary for the operation 14   of the governmental entity, including salaries and benefits, 15   or which are for the health and welfare of the governmental 16   entitys citizens or primarily intended to benefit all 17   residents of the governmental entity, but excluding services 18   financed by statutory funds other than a debt service fund. 19   The city finance committee is required to adopt rules under 20   Code chapter 17A for cities to implement the new Code section 21   governing funding of general operations. The county finance 22   committee is required to adopt rules under Code chapter 17A for 23   counties to implement the new Code section governing funding 24   of general operations. 25   The bill updates the calculation methodologies for 26   agricultural extension levies under Code section 176A.10 and 27   reduces levy rates used to make certain calculations related to 28   the secondary road fund allocations under Code section 312.2. 29   The bill requests the legislative council to establish 30   a legislative study committee during the 2025 legislative 31   interim to examine appropriate rates of property taxation 32   imposed by governmental entities following enactment of 33   the bill. The study committee shall consist of six voting 34   members of the general assembly. Two members shall be 35   -75-   LSB 2982XC (4) 91   jm/md   75/ 76  

  S.F. _____   appointed by the majority leader of the senate, one member 1   appointed by the minority member of the senate, two members 2   appointed by the speaker of the house of representatives, 3   and one member appointed by the minority leader of the house 4   of representatives. The study committee is required to make 5   recommendations to the general assembly by January 15, 2026. 6   DIVISION IX  ELDERLY PROPERTY TAXES  LOW INCOME. The 7   bill modifies the eligibility for the property tax credit for 8   persons ages 70 and older under Code chapter 425, subchapter 9   II. Currently, a person filing a claim for the property tax 10   credit who is at least 70 years of age and who has a household 11   income of less than 250 percent of the federal poverty level is 12   eligible to receive a specified credit amount against property 13   taxes due on the claimants homestead. The bill increases the 14   household income threshold for eligibility from less than 250 15   percent of the federal poverty level to less than 350 percent 16   of the federal poverty level. 17   The division applies to assessment years beginning on or 18   after January 1, 2026. 19   DIVISION X  BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND 20    LEVY. Code section 165.18 authorizes the secretary of 21   agriculture to direct the board of supervisors of each county 22   to levy an amount sufficient to pay the expenses estimated to 23   be incurred from the brucellosis and tuberculosis eradication 24   fund for the following fiscal year, subject to a maximum levy 25   of 33.75 cents per $1,000. The bill strikes the authority to 26   levy such a tax beginning with property taxes due and payable 27   in fiscal years beginning July 1, 2025. The division takes 28   effect upon enactment. 29   -76-   LSB 2982XC (4) 91   jm/md   76/ 76