Senate File 2472 H-8394 Amend Senate File 2472, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 PROPERTY TAX REVENUE LIMITATIONS —— BOND REVENUE USE 6 LIMITATIONS —— GENERAL FUND RESERVES 7 Section 1. Section 11.11, Code 2026, is amended to read as 8 follows: 9 11.11 Scope of audits. 10 The written report of the audit of a governmental 11 subdivision shall include the auditor’s opinion as to whether a 12 governmental subdivision’s financial statements are presented 13 fairly in all material respects in conformity with generally 14 accepted accounting principles or with an other another 15 comprehensive basis of accounting. As a part of conducting an 16 audit of a governmental subdivision, an evaluation of internal 17 control and tests for compliance with laws and regulations 18 shall be performed. As part of conducting an audit of a 19 governmental subdivision, an examination of the governmental 20 subdivision’s compliance with the reporting requirements of 21 section 331.403, subsection 3 , or section 384.22, subsection 2 , 22 if applicable, shall be performed. As part of conducting an 23 audit of a governmental subdivision for fiscal years beginning 24 on or after July 1, 2027, an examination of the governmental 25 subdivision’s compliance with section 24.35 shall be performed, 26 including verification of the circumstances resulting in actual 27 reserve funds exceeding the specified limits. 28 Sec. 2. Section 24.34, Code 2026, is amended to read as 29 follows: 30 24.34 Unliquidated obligations. 31 A city, county, or other political subdivision governmental 32 entity, as defined in section 24.35, may establish an 33 encumbrance system for any obligation not liquidated at the 34 close of the fiscal year in which the obligation has been 35 -1- SF 2472.4081 (3) 91 md/jh 1/ 54 #1.

encumbered assigned, committed, restricted, or specified as 1 nonspendable . The encumbered obligations may be retained 2 upon the books of the city, county, or other political 3 subdivision governmental entity, as defined in section 24.35, 4 until liquidated, all in accordance with generally accepted 5 governmental accounting practices principles, as established by 6 the governmental accounting standards board . 7 Sec. 3. NEW SECTION . 24.35 General fund reserves —— 8 limitations. 9 1. For purposes of this section: 10 a. “Budget year” is the fiscal year beginning during the 11 calendar year in which a budget is certified. 12 b. “Current fiscal year” is the fiscal year ending during 13 the calendar year in which a budget for the budget year is 14 certified. 15 c. “General fund” means a governmental entity’s fund 16 designated as such by law or the governmental entity’s fund 17 from which primary general operations of the governmental 18 entity are funded. 19 d. “Governmental entity” means any unit of government 20 or other public body or public corporation, including any 21 intergovernmental entity, that has the power to impose or 22 certify a property tax levy. “Governmental entity” does not 23 include a school district. 24 e. “Unassigned” means funds that are not restricted, 25 committed, assigned, or nonspendable within the meaning of 26 generally accepted accounting principles, as established by the 27 governmental accounting standards board. 28 2. a. For budgets certified for budget years beginning 29 on or after July 1, 2027, proposed unassigned reserve funds 30 identified within a governmental entity’s general fund shall 31 not exceed an amount equal to thirty-five percent of the 32 budgeted expenditures from the governmental entity’s general 33 fund for the current fiscal year prior to budgeted transfers 34 from such general fund. 35 -2- SF 2472.4081 (3) 91 md/jh 2/ 54

b. If the governmental entity’s budget does not comply with 1 the requirements of paragraph “a” , the department of management 2 shall not certify the governmental entity’s taxes back to the 3 county auditor under section 24.17 and the governmental entity 4 shall remedy the violation and recertify the budget. 5 3. Each governmental entity shall establish an obligated 6 funds account within the governmental entity’s general fund. 7 Restricted, committed, assigned, or nonspendable funds within 8 the meaning of generally accepted accounting principles, as 9 established by the governmental accounting standards board, 10 shall be deposited in and accounted for in the obligated funds 11 account, including but not limited to such funds that are 12 in the governmental entity’s general fund for the purchase, 13 lease-purchase, or major refurbishment of law enforcement, 14 public safety, and public works vehicles and equipment and for 15 vertical infrastructure and horizontal infrastructure projects. 16 4. To ensure uniformity, accuracy, and efficiency in the 17 certification of governmental entity budgets according to the 18 requirements of this section, the department of management 19 shall prescribe the procedures to be used and instruct the 20 appropriate officials of the various governmental entities on 21 implementation of the procedures. 22 Sec. 4. Section 24.48, Code 2026, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 6. The authority to suspend property tax 25 levy limitations under this section shall not apply to the 26 limitations of section 444.25. 27 Sec. 5. Section 176A.8, subsection 13, Code 2026, is amended 28 by striking the subsection. 29 Sec. 6. NEW SECTION . 444.25 Maximum property tax levy 30 dollars. 31 1. For purposes of this section, unless the context 32 otherwise requires: 33 a. “Budget year” is the fiscal year beginning during the 34 calendar year in which a budget is certified. 35 -3- SF 2472.4081 (3) 91 md/jh 3/ 54

b. “Current fiscal year” is the fiscal year ending during 1 the calendar year in which a budget for the budget year is 2 certified. 3 c. “Governmental entity” means any unit of government 4 or other public body or public corporation, including any 5 intergovernmental entity or special purpose district, that 6 has the power to impose or certify a property tax levy. 7 “Governmental entity” does not include a school district. 8 d. “New valuation” means the increase from the current 9 fiscal year to the budget year in taxable valuation, as shown 10 on the assessment roll due to the following, the amount of each 11 as reported under section 331.510 by the county auditor to the 12 department of management: 13 (1) New construction. 14 (2) Additions or improvements to existing structures that 15 are not normal and necessary repairs under section 441.21, 16 subsection 8. 17 (3) Net boundary adjustments, including annexation, 18 severance, incorporation, consolidation, or discontinuance as 19 those terms are defined in section 368.1. 20 (4) Valuation exempt from property tax for the current 21 fiscal year as the result of prior new construction, additions, 22 or improvements under section 15.332, Code 2025, section 23 15.500, chapter 404, or chapter 427B, subchapter I, but which 24 is not exempt from property tax in the budget year. 25 e. “Property tax levy” means each ad valorem property tax 26 authorized by law to be imposed by a governmental entity, but 27 excluding any levy the revenue from which is specified by law 28 for debt service or required to be used exclusively for the 29 repayment of bonds or other indebtedness. 30 2. a. For the budget year beginning July 1, 2027, and 31 each budget year thereafter, the maximum aggregate amount of 32 property tax dollars that may be certified for levy among all 33 property tax levies imposed by a governmental entity against 34 property that is not new valuation shall not exceed an amount 35 -4- SF 2472.4081 (3) 91 md/jh 4/ 54

equal to the sum of one hundred two percent of the aggregate 1 amount of property tax dollars certified for levy by the 2 governmental entity among all property tax levies imposed by 3 the governmental entity for the current fiscal year. 4 b. If the budget year includes a voter-approved property tax 5 levy, or an increased rate thereof, that was not approved for 6 imposition in the current fiscal year, the maximum aggregate 7 amount of property tax dollars for the governmental entity 8 under paragraph “a” for the budget year shall be increased 9 by the amount of the voter-approved property tax levy or 10 the voter-approved rate increase, as applicable, approved 11 at election for the budget year. If the current fiscal 12 year includes a voter-approved property tax levy that is not 13 approved for imposition in the budget year, or a decreased rate 14 thereof, the maximum aggregate amount of property tax dollars 15 for the governmental entity under paragraph “a” for the budget 16 year shall be reduced by the amount of the voter-approved 17 property tax levy or voter-approved rate decrease, as 18 applicable, for the current fiscal year. 19 c. The amount of property tax dollars calculated under this 20 section includes those amounts budgeted by the governmental 21 entity as replacement taxes under chapter 437A or 437B, if 22 applicable. 23 3. For purposes of this section, if the governmental 24 entity’s taxes for a property tax levy were not certified 25 back by the department of management under section 24.17 for 26 the current fiscal year due to an act or omission of the 27 governmental entity, the current fiscal year’s property tax 28 dollars certified for levy for that property tax levy shall 29 be equal to the amount certified for levy for the fiscal year 30 immediately preceding the current fiscal year. 31 4. If a governmental entity certifies a budget that violates 32 this section, the department of management shall reduce each of 33 the applicable governmental entity’s property tax levies on a 34 pro rata basis so that the governmental entity is in compliance 35 -5- SF 2472.4081 (3) 91 md/jh 5/ 54

with this section. 1 5. This section shall not be construed as removing or 2 otherwise affecting property tax limitations, including levy 3 rate limitations expressed as a specific amount of money due 4 per an amount of value and use limitations, otherwise provided 5 by law for any property tax levy of the governmental entity. 6 Sec. 7. NEW SECTION . 444.26 Use of bonds and indebtedness 7 for general operations —— prohibition. 8 1. For purposes of this section: 9 a. “General operations” means services or activities 10 generally funded from the governmental entity’s general fund, 11 which are necessary for the operation of the governmental 12 entity, including salaries and benefits, or which are for the 13 health and welfare of the governmental entity’s citizens or 14 primarily intended to benefit all residents of the governmental 15 entity, but excluding direct and indirect capital expenditures 16 properly allocable under the Internal Revenue Code, as defined 17 in section 422.3, if the governmental entity were a taxpayer, 18 capital leases, and services financed by statutory funds other 19 than a debt service fund. 20 b. “Governmental entity” means any unit of government 21 or other public body or public corporation, including any 22 intergovernmental entity, that has the power to impose or 23 certify a property tax levy. 24 2. On or after July 1, 2026, the governing body of a 25 governmental entity shall not issue bonds or other indebtedness 26 payable from an ad valorem property tax levy for the purpose of 27 funding the general operations of the governmental entity or 28 otherwise use proceeds from the sale of bonds or issuance of 29 other indebtedness to fund general operations. 30 3. The department of management, following consultation 31 with the city finance committee and the county finance 32 committee, may adopt rules under chapter 17A for governmental 33 entities to implement this section. 34 DIVISION II 35 -6- SF 2472.4081 (3) 91 md/jh 6/ 54

COMMERCIAL AND INDUSTRIAL PROPERTY —— TAXPAYER RELIEF FUND 1 APPROPRIATION 2 Sec. 8. Section 8.57E, Code 2026, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 1A. For each fiscal year beginning on or 5 after July 1, 2027, there is appropriated from the general fund 6 of the state to the taxpayer relief fund the sum of one hundred 7 twenty-five million dollars. 8 Sec. 9. Section 441.21, subsection 5, paragraph e, 9 subparagraphs (1), (2), and (3), Code 2026, are amended to read 10 as follows: 11 (1) For the fiscal year beginning July 1, 2023, there 12 is appropriated from the general fund of the state to the 13 department of revenue the sum of one hundred twenty-two million 14 three hundred fifty thousand dollars to be used for payments 15 under this paragraph calculated as a result of the assessment 16 limitations imposed under paragraph “b” , subparagraph (2), 17 subparagraph division (a), and paragraph “c” , subparagraph (2), 18 subparagraph division (a). For each fiscal year beginning 19 on or after July 1, 2024, but before July 1, 2027, there 20 is appropriated from the general fund of the state to the 21 department of revenue the sum of one hundred twenty-five 22 million dollars to be used for payments under this paragraph 23 calculated as a result of the assessment limitations imposed 24 under paragraph “b” , subparagraph (2), subparagraph division 25 (a), and paragraph “c” , subparagraph (2), subparagraph division 26 (a). 27 (2) For fiscal years beginning on or after July 1, 2023, but 28 before July 1, 2027, each county treasurer shall be paid by the 29 department of revenue an amount calculated under subparagraph 30 (4) for the applicable fiscal year . If an amount appropriated 31 for the fiscal year is insufficient to make all payments as 32 calculated under subparagraph (4), the director of revenue 33 shall prorate the payments to the county treasurers and shall 34 notify the county auditors of the pro rata percentage on or 35 -7- SF 2472.4081 (3) 91 md/jh 7/ 54

before September 30. 1 (3) On or before July 1 of each applicable fiscal year, the 2 assessor shall report to the county auditor that portion of the 3 total actual value of all commercial property and industrial 4 property in the county that is subject to the assessment 5 limitations imposed under paragraph “b” , subparagraph (2), 6 subparagraph division (a), and paragraph “c” , subparagraph (2), 7 subparagraph division (a), for the assessment year used to 8 calculate the taxes due and payable in that fiscal year. 9 Sec. 10. Section 441.21, subsection 5, paragraph e, 10 subparagraph (4), unnumbered paragraph 1, Code 2026, is amended 11 to read as follows: 12 On or before September 1 of each applicable fiscal year, the 13 county auditor shall prepare a statement, based on the report 14 received in subparagraph (3) and information transmitted to 15 the county auditor under chapter 434 , listing for each taxing 16 district in the county: 17 DIVISION III 18 SCHOOL TAXES 19 Sec. 11. Section 257.3, subsection 1, paragraph a, Code 20 2026, is amended to read as follows: 21 a. (1) Except as provided in subsections 2 and 3 , a school 22 district shall cause to be levied each budget year beginning 23 before July 1, 2027 , for the school general fund, a foundation 24 property tax equal to five dollars and forty cents per thousand 25 dollars of assessed valuation on all taxable property in the 26 district. The county auditor shall spread the foundation levy 27 over all taxable property in the district. 28 (2) Except as provided in subsections 2 and 3, a school 29 district shall cause to be levied for the budget year beginning 30 July 1, 2027, and each succeeding budget year, for the school 31 general fund, a foundation property tax equal to five dollars 32 per thousand dollars of assessed valuation on all taxable 33 property in the district. The county auditor shall spread the 34 foundation levy over all taxable property in the district. 35 -8- SF 2472.4081 (3) 91 md/jh 8/ 54

Sec. 12. Section 257.3, subsection 2, paragraphs a and b, 1 Code 2026, are amended to read as follows: 2 a. Notwithstanding subsection 1, a reorganized school 3 district for which the reorganization takes effect on or 4 after July 1, 2027, shall cause a foundation property tax of 5 four dollars and forty cents per thousand dollars of assessed 6 valuation to be levied on all taxable property which, in the 7 year preceding a reorganization, was within a school district 8 affected by the reorganization as defined in section 275.1, 9 or in the year preceding a dissolution was a part of a school 10 district that dissolved if the dissolution proposal has 11 been approved by the director of the department of education 12 pursuant to section 275.55. 13 b. In For a reorganized school district for which the 14 reorganization took effect on or after July 1, 2027, in 15 succeeding school years, the foundation property tax levy on 16 that portion shall be increased to the rate of four dollars and 17 ninety fifty cents per thousand dollars of assessed valuation 18 the first succeeding year, five four dollars and fifteen 19 seventy-five cents per thousand dollars of assessed valuation 20 the second succeeding year, and five dollars and forty cents 21 per thousand dollars of assessed valuation the third succeeding 22 year and each year thereafter under subsection 1, paragraph “a” . 23 Sec. 13. Section 425A.3, subsection 1, Code 2026, is amended 24 to read as follows: 25 1. The family farm tax credit fund shall be apportioned 26 each year in the manner provided in this chapter so as to give 27 a credit against the tax on each eligible tract of agricultural 28 land within the several school districts of the state in which 29 the levy for the general school fund exceeds five dollars and 30 forty cents per thousand dollars of assessed value the levy 31 rate under section 257.3, subsection 1, paragraph “a” . The 32 amount of the credit on each eligible tract of agricultural 33 land shall be the amount the tax levied for the general school 34 fund exceeds the amount of tax which would be levied on each 35 -9- SF 2472.4081 (3) 91 md/jh 9/ 54

eligible tract of agricultural land were the levy for the 1 general school fund five dollars and forty cents per thousand 2 dollars of assessed value the levy rate under section 257.3, 3 subsection 1, paragraph “a” , for the previous year. However, 4 in the case of a deficiency in the family farm tax credit fund 5 to pay the credits in full, the credit on each eligible tract 6 of agricultural land in the state shall be proportionate and 7 applied as provided in this chapter . 8 Sec. 14. Section 425A.5, Code 2026, is amended to read as 9 follows: 10 425A.5 Computation by county auditor. 11 The family farm tax credit allowed each year shall be 12 computed as follows: On or before April 1, the county auditor 13 shall list by school districts all tracts of agricultural 14 land which are entitled to credit, the taxable value for the 15 previous year, the budget from each school district for the 16 previous year, and the tax rate determined for the general 17 fund of the school district in the manner prescribed in 18 section 444.3 for the previous year, and if the tax rate is in 19 excess of five dollars and forty cents per thousand dollars of 20 assessed value the levy rate under section 257.3, subsection 21 1, paragraph “a” , the auditor shall multiply the tax levy which 22 is in excess of five dollars and forty cents per thousand 23 dollars of assessed value the levy rate under section 257.3, 24 subsection 1, paragraph “a” , by the total taxable value of the 25 agricultural land entitled to credit in the school district, 26 and on or before April 1, certify the total amount of credit 27 and the total number of acres entitled to the credit to the 28 department of revenue. 29 Sec. 15. Section 426.3, Code 2026, is amended to read as 30 follows: 31 426.3 Where credit given. 32 The agricultural land credit fund shall be apportioned each 33 year in the manner hereinafter provided so as to give a credit 34 against the tax on each tract of agricultural lands within the 35 -10- SF 2472.4081 (3) 91 md/jh 10/ 54

several school districts of the state in which the levy for 1 the general school fund exceeds five dollars and forty cents 2 per thousand dollars of assessed value the levy rate under 3 section 257.3, subsection 1, paragraph “a” ; the amount of such 4 credit on each tract of such lands shall be the amount the tax 5 levied for the general school fund exceeds the amount of tax 6 which would be levied on said tract of such lands were the 7 levy for the general school fund five dollars and forty cents 8 per thousand dollars of assessed value the levy rate under 9 section 257.3, subsection 1, paragraph “a” , for the previous 10 year, except in the case of a deficiency in the agricultural 11 land credit fund to pay said credits in full, in which case the 12 credit on each eligible tract of such lands in the state shall 13 be proportionate and shall be applied as hereinafter provided. 14 Sec. 16. Section 426.6, subsection 1, Code 2026, is amended 15 to read as follows: 16 1. The agricultural land tax credit allowed each year 17 shall be computed as follows: On or before April 1, the 18 county auditor shall list by school districts all tracts of 19 agricultural lands which are entitled to credit, together with 20 the taxable value for the previous year, together with the 21 budget from each school district for the previous year, and the 22 tax rate determined for the general fund of the district in 23 the manner prescribed in section 444.3 for the previous year, 24 and if such tax rate is in excess of five dollars and forty 25 cents per thousand dollars of assessed value the levy rate 26 under section 257.3, subsection 1, paragraph “a” , the auditor 27 shall multiply the tax levy which is in excess of five dollars 28 and forty cents per thousand dollars of assessed value the 29 levy rate under section 257.3, subsection 1, paragraph “a” , by 30 the total taxable value of the agricultural lands entitled to 31 credit in the district, and on or before April 1, certify the 32 amount to the department of revenue. 33 Sec. 17. ADJUSTMENT OF CALCULATIONS. For property tax 34 credits under chapters 425A and 426 for property taxes due and 35 -11- SF 2472.4081 (3) 91 md/jh 11/ 54

payable in the fiscal year beginning July 1, 2027, the tax rate 1 determined for the general fund of the school district in the 2 manner prescribed in section 444.3 for the previous year shall 3 be determined using the appropriate property tax levy rate 4 under section 257.3, as amended in this division of this Act. 5 Sec. 18. APPLICABILITY. This division of this Act applies 6 to fiscal years and school budget years beginning on or after 7 July 1, 2027. 8 DIVISION IV 9 SECURE AN ADVANCED VISION FOR EDUCATION FUND —— EQUITY TRANSFER 10 PERCENTAGE —— FUTURE REPEAL 11 Sec. 19. Section 423.2, subsection 12, Code 2026, is amended 12 to read as follows: 13 12. The sales tax rate of six percent is reduced to five 14 percent on January 1, 2051 2071 . 15 Sec. 20. Section 423.2A, subsection 2, paragraph c, Code 16 2026, is amended to read as follows: 17 c. Transfer one-sixth of the remaining revenues to the 18 secure an advanced vision for education fund created in section 19 423F.2 . This paragraph “c” is repealed January 1, 2051 2071 . 20 Sec. 21. Section 423.5, subsection 4, Code 2026, is amended 21 to read as follows: 22 4. The use tax rate of six percent is reduced to five 23 percent on January 1, 2051 2071 . 24 Sec. 22. Section 423.43, subsection 1, paragraph b, Code 25 2026, is amended to read as follows: 26 b. Subsequent to the deposit into the general fund of 27 the state and after the transfer of such revenues collected 28 under chapter 423B , the department shall transfer one-sixth of 29 such remaining revenues to the secure an advanced vision for 30 education fund created in section 423F.2 . This paragraph is 31 repealed January 1, 2051 2071 . 32 Sec. 23. Section 423F.2, subsection 3, paragraph b, 33 subparagraph (2), subparagraph division (b), Code 2026, is 34 amended to read as follows: 35 -12- SF 2472.4081 (3) 91 md/jh 12/ 54

(b) For each fiscal year beginning on or after July 1, 1 2020, but before July 1, 2026, the equity transfer percentage 2 is equal to the equity transfer percentage for the immediately 3 preceding fiscal year, unless the amount of moneys available 4 in the secure an advanced vision for education fund in the 5 immediately preceding fiscal year equals or exceeds one hundred 6 two percent of the amount of moneys available in the fund for 7 the fiscal year prior to the immediately preceding fiscal year, 8 in which case the equity transfer percentage shall be the 9 equity transfer percentage for the immediately preceding fiscal 10 year plus one percent subject to the limitation in subparagraph 11 division (c). 12 Sec. 24. Section 423F.2, subsection 3, paragraph b, 13 subparagraph (2), subparagraph division (c), Code 2026, is 14 amended by striking the subparagraph division and inserting in 15 lieu thereof the following: 16 (c) (i) For the fiscal year beginning July 1, 2026, the 17 equity transfer percentage is twelve and one-half percent. 18 (ii) For the fiscal year beginning July 1, 2027, the equity 19 transfer percentage is fifteen percent. 20 (iii) For the fiscal year beginning July 1, 2028, the equity 21 transfer percentage is seventeen and one-half percent. 22 (iv) For the fiscal year beginning July 1, 2029, the equity 23 transfer percentage is twenty-two and one-half percent. 24 (v) For the fiscal year beginning July 1, 2030, and each 25 fiscal year thereafter, the equity transfer percentage is 26 twenty-five percent. 27 Sec. 25. Section 423F.6, Code 2026, is amended to read as 28 follows: 29 423F.6 Repeal. 30 This chapter is repealed January 1, 2051 2071 . 31 Sec. 26. SCHOOL DISTRICT FUNDING RECONCILIATION. 32 For amounts allocated under section 423F.2 for fiscal 33 years beginning on or after July 1, 2026, the department of 34 management shall adjust or reconcile actual amounts to be 35 -13- SF 2472.4081 (3) 91 md/jh 13/ 54

received by school districts in the fiscal year immediately 1 following the fiscal year during which the revenues were 2 collected. 3 DIVISION V 4 PROPERTY PARCEL INFORMATION 5 Sec. 27. Section 331.510, Code 2026, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 5. a. An annual report not later 8 than January 1 to the department of management containing 9 parcel-level property data, including parcel identification 10 information, location, size, valuation, classification, types 11 of structures and improvements, exemptions, credits, historical 12 amounts of property taxes due and payable, and whether the 13 parcel is subject to a division of revenue. 14 b. In addition to the information required under paragraph 15 “a” , the department of management may require additional 16 parcel-level data deemed necessary by the director of the 17 department of management. The department shall prescribe the 18 form and manner of submitting the annual report under this 19 subsection. 20 c. The department of management shall establish and manage 21 a searchable internet-based dashboard that contains the 22 information collected under paragraphs “a” and “b” , as well as 23 individual parcel information tax information provided as part 24 of the statements required under section 24.2A, subsection 2, 25 paragraph “b” . 26 DIVISION VI 27 URBAN RENEWAL 28 Sec. 28. Section 15A.1, subsection 1, paragraph b, Code 29 2026, is amended to read as follows: 30 b. For purposes of this chapter , “economic development” 31 means private or joint public and private investment involving 32 the creation of new jobs and income or the retention of 33 existing jobs and income that would otherwise be lost or the 34 provision of workforce housing . 35 -14- SF 2472.4081 (3) 91 md/jh 14/ 54

Sec. 29. Section 15A.1, subsection 2, Code 2026, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . e. Development policies that advance the 3 development of workforce housing. 4 Sec. 30. Section 331.403, subsection 3, paragraph b, 5 subparagraph (19), Code 2026, is amended by striking the 6 subparagraph. 7 Sec. 31. Section 384.22, subsection 2, paragraph b, 8 subparagraph (19), Code 2026, is amended by striking the 9 subparagraph. 10 Sec. 32. Section 403.17, subsection 10, Code 2026, is 11 amended to read as follows: 12 10. “Economic development area” means an area of a 13 municipality designated by the local governing body as 14 appropriate for commercial and industrial enterprises, public 15 improvements related to housing and residential development, 16 or construction of housing and residential development for low 17 and moderate income families, including single or multifamily 18 housing. If an urban renewal plan for an urban renewal area is 19 based upon a finding that the area is an economic development 20 area and that no part contains slum or blighted conditions, 21 then the division of revenue provided in section 403.19 and 22 stated in the plan shall be limited to twenty years from 23 the calendar year following the calendar year in which the 24 municipality first certifies to the county auditor the amount 25 of any loans, advances, indebtedness, or bonds which qualify 26 for payment from the division of revenue provided in section 27 403.19 . Such designated area shall not include agricultural 28 land, including land which is part of a century farm, unless 29 the owner of the agricultural land or century farm agrees to 30 include the agricultural land or century farm in the urban 31 renewal area. For the purposes of this subsection , “century 32 farm” means a farm in which at least forty acres of such farm 33 have been held in continuous ownership by the same family for 34 one hundred years or more. 35 -15- SF 2472.4081 (3) 91 md/jh 15/ 54

Sec. 33. Section 403.17, subsection 14, Code 2026, is 1 amended to read as follows: 2 14. “Low or and moderate income families” means those 3 families, including single person households, earning no 4 more than eighty percent of the higher of the median family 5 income of the county or the statewide nonmetropolitan area as 6 determined by the latest United States department of housing 7 and urban development, section 8 income guidelines. 8 Sec. 34. Section 403.17, Code 2026, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 14A. “Low and moderate income family 11 housing” means housing for low and moderate income families and 12 includes housing that meets the requirements of section 15.353. 13 Sec. 35. Section 403.19, subsection 2, paragraph a, Code 14 2026, is amended to read as follows: 15 a. That portion of the taxes each year in excess of such 16 amount shall be allocated to and when collected be paid into a 17 special fund of the municipality to pay the principal of and 18 interest on loans, moneys advanced to, or indebtedness, whether 19 funded, refunded, assumed, or otherwise, including bonds 20 issued under the authority of section 403.9, subsection 1 , 21 incurred by the municipality to finance or refinance, in whole 22 or in part, an urban renewal project within the area, and to 23 provide assistance for low and moderate income family housing 24 as provided in section 403.22 . However, except as provided 25 in paragraph “b” , taxes for the regular and voter-approved 26 physical plant and equipment levy of a school district imposed 27 pursuant to section 298.2 ; and taxes for the instructional 28 support program of a school district imposed pursuant to 29 section 257.19 , ; taxes for the payment of bonds and interest of 30 each taxing district , ; foundation property taxes of a school 31 district imposed under section 257.3 levied against property 32 located in an incorporated area and subject to an ordinance 33 providing for a division of revenue adopted on or after January 34 1, 2027; taxes for emergency medical services imposed pursuant 35 -16- SF 2472.4081 (3) 91 md/jh 16/ 54

to chapter 357F, 357G, or 422D; and taxes imposed under section 1 346.27, subsection 22 , related to joint county-city buildings 2 shall be collected against all taxable property within the 3 taxing district without limitation by the provisions of this 4 subsection . 5 Sec. 36. Section 403.19, subsection 2, Code 2026, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . e. For urban renewal areas for which an 8 ordinance providing for a division of revenue is not limited 9 in duration under section 403.17, subsection 10, after twenty 10 years following the effective date of this division of this 11 Act or after twenty years from the calendar year following 12 the calendar year in which the municipality first certifies 13 to the county auditor the amount of any loans, advances, 14 indebtedness, or bonds which qualify for payment from the 15 division of revenue, whichever is later, the amount determined 16 under paragraph “a” that may be paid into the municipality’s 17 special fund shall not exceed sixty percent of the amount 18 otherwise determined under paragraph “a” but for this paragraph 19 and such excess amounts shall be allocated and paid to the 20 respective taxing districts in the same manner as amounts under 21 subsection 1. The municipality may exceed the limitation in 22 this paragraph to the extent necessary for payments of bonds 23 or other indebtedness incurred before the effective date of 24 this division of this Act, but in such event the municipality 25 shall not issue bonds or other indebtedness payable from such 26 division of revenue while exceeding the limitation. This 27 paragraph shall not apply to divisions of revenue established 28 by community colleges under chapter 260E or rural improvement 29 zones under chapter 357H. 30 Sec. 37. Section 403.19, Code 2026, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 3A. An ordinance providing for a division 33 of revenue under this section that is adopted on or after the 34 effective date of this division of this Act shall be limited 35 -17- SF 2472.4081 (3) 91 md/jh 17/ 54

to twenty-three years from the calendar year following the 1 calendar year in which the municipality first certifies to the 2 county auditor the amount of any loans, advances, indebtedness, 3 or bonds that qualify for payment from the division of 4 revenue provided for in this section. The ordinance shall 5 terminate and be of no further force and effect following the 6 twenty-three-year period provided in this subsection. This 7 subsection shall not apply to divisions of revenue established 8 by community colleges under chapter 260E or rural improvement 9 zones under chapter 357H. 10 Sec. 38. Section 403.19, Code 2026, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 12. For any fiscal year beginning on 13 or after July 1, 2027, following written request filed with 14 the county auditor and the board of directors of the school 15 district, a school district may approve by resolution of the 16 board of directors the payment from the school district’s 17 general fund to the municipality for deposit in the special 18 fund under this section all or a portion of the school district 19 foundation property taxes under section 257.3 levied against 20 property located in an incorporated area and subject to an 21 ordinance providing for a division of revenue adopted on or 22 after January 1, 2027, for one or more applicable fiscal years. 23 If approved, the board of directors shall file such resolution 24 with the county auditor. Payments approved under this 25 subsection are voluntary and a school district is not required 26 to pay over the revenue to the municipality unless approved 27 by resolution. Amounts paid by a school district under this 28 subsection shall continue to be considered foundation property 29 taxes levied under section 257.3 and such payment shall not 30 result in the adjustment of state foundation aid or other 31 amounts under chapter 257. 32 Sec. 39. REPEAL. Section 403.22, Code 2026, is repealed. 33 Sec. 40. EFFECTIVE DATE. This division of this Act, being 34 deemed of immediate importance, takes effect upon enactment. 35 -18- SF 2472.4081 (3) 91 md/jh 18/ 54

Sec. 41. APPLICABILITY. The following applies to property 1 taxes due and payable in fiscal years beginning on or after 2 July 1, 2027: 3 The portion of the section of this division of this Act 4 excluding taxes for emergency medical services imposed pursuant 5 to chapter 357F, 357G, or 422D from divisions of revenue by 6 amending section 403.19, subsection 2, paragraph “a”. 7 Sec. 42. APPLICABILITY. The following applies to property 8 taxes due and payable in fiscal years beginning on or after 9 July 1, 2028: 10 The portion of the section of this division of this Act 11 excluding taxes under section 257.3 from divisions of revenue 12 by amending section 403.19, subsection 2, paragraph “a”. 13 Sec. 43. APPLICABILITY. The following applies to urban 14 renewal areas in existence on or established on or after the 15 effective date of this division of this Act: 16 The section of this division of this Act repealing section 17 403.22. 18 DIVISION VII 19 ASSESSMENT PROCEDURES 20 Sec. 44. Section 441.21, subsection 3, Code 2026, is amended 21 to read as follows: 22 3. a. “Actual value” , “taxable value” , or “assessed 23 value” as used in other sections of the Code in relation to 24 assessment of property for taxation shall mean the valuations 25 as determined by this section ; however, other provisions of 26 the Code providing special methods or formulas for assessing 27 or valuing specified property shall remain in effect, but this 28 section shall be applicable to the extent consistent with such 29 provisions. The assessor and department of revenue shall 30 disclose at the written request of the taxpayer all information 31 in any formula or method used to determine the actual value of 32 the taxpayer’s property. In addition, for assessment years 33 beginning on or after January 1, 2027, if the taxpayer’s 34 property has increased in actual value by ten percent or more 35 -19- SF 2472.4081 (3) 91 md/jh 19/ 54