Senate Amendment to House Amendment to Senate File 2472 H-8495 Amend the House amendment, S-5210, to Senate File 2472, as 1 amended, passed, and reprinted by the Senate, as follows: 2 1. By striking page 1, line 5, through page 57, line 19, and 3 inserting: 4 << DIVISION I 5 COUNTY PROPERTY TAXES AND BUDGETS 6 Section 1. Section 331.423, subsection 1, paragraph b, 7 subparagraph (1), Code 2026, is amended to read as follows: 8 (1) For each fiscal year beginning on or after July 1, 9 2024, but before July 1, 2028 2027 , subject to subparagraph 10 (3), the greater of three dollars and fifty cents per thousand 11 dollars of assessed value used to calculate taxes for general 12 county services for the budget year and the adjusted general 13 county basic levy rate, as adjusted under subparagraph (2), if 14 applicable. 15 Sec. ___. Section 331.423, subsection 1, paragraph c, Code 16 2026, is amended to read as follows: 17 c. For each fiscal year beginning on or after July 1, 18 2028, three dollars and fifty cents per thousand dollars of 19 assessed value. For fiscal years beginning on or after July 20 1, 2027, but before July 1, 2030, a levy rate per one thousand 21 dollars of assessed value equal to one thousand multiplied 22 by the quotient of one hundred two percent of the current 23 fiscal year’s actual property tax dollars certified for levy 24 under this subsection 1 divided by the remainder of the total 25 assessed value used to calculate such taxes for the budget year 26 minus value attributable to new valuation. 27 Sec. ___. Section 331.423, subsection 1, Code 2026, is 28 amended by adding the following new paragraph: 29 NEW PARAGRAPH . d. For each fiscal year beginning on or 30 after July 1, 2030, the lesser of: 31 (1) A levy rate per one thousand dollars of assessed value 32 equal to one thousand multiplied by the quotient of one hundred 33 two percent of the current fiscal year’s actual property tax 34 dollars certified for levy under this subsection 1 divided by 35 -1- S 5210.4563.S (2) 91 mb 1/ 82 #1.

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 (2) Three dollars and fifty cents per thousand dollars of 4 assessed value. 5 Sec. ___. Section 331.423, subsection 2, paragraph b, 6 subparagraph (1), Code 2026, is amended to read as follows: 7 (1) For each fiscal year beginning on or after July 1, 2024, 8 but before July 1, 2028 2027 , subject to subparagraph (3), the 9 greater of three dollars and ninety-five cents per thousand 10 dollars of assessed value used to calculate taxes for rural 11 county services for the budget year and the adjusted rural 12 county basic levy rate, as adjusted under subparagraph (2), if 13 applicable. 14 Sec. ___. Section 331.423, subsection 2, paragraph c, Code 15 2026, is amended to read as follows: 16 c. For each fiscal year beginning on or after July 1, 2028, 17 three dollars and ninety-five cents per thousand dollars of 18 assessed value. For fiscal years beginning on or after July 19 1, 2027, but before July 1, 2030, a levy rate per one thousand 20 dollars of assessed value equal to one thousand multiplied 21 by the quotient of one hundred two percent of the current 22 fiscal year’s actual property tax dollars certified for levy 23 under this subsection 2 divided by the remainder of the total 24 assessed value used to calculate such taxes for the budget year 25 minus value attributable to new valuation. 26 Sec. ___. Section 331.423, subsection 2, Code 2026, is 27 amended by adding the following new paragraph: 28 NEW PARAGRAPH . d. For each fiscal year beginning on or 29 after July 1, 2030, the lesser of: 30 (1) A levy rate per one thousand dollars of assessed value 31 equal to one thousand multiplied by the quotient of one hundred 32 two percent of the current fiscal year’s actual property tax 33 dollars certified for levy under this subsection 2 divided by 34 the remainder of the total assessed value used to calculate 35 -2- S 5210.4563.S (2) 91 mb 2/ 82

such taxes for the budget year minus value attributable to new 1 valuation. 2 (2) Three dollars and ninety-five cents per thousand 3 dollars of assessed value. 4 Sec. ___. Section 331.423, subsection 3, Code 2026, is 5 amended by adding the following new paragraph: 6 NEW PARAGRAPH . c. “New valuation” means the increase 7 from the current fiscal year to the budget year in taxable 8 valuation, as shown on the assessment roll due to the 9 following, the amount of each as reported under section 331.510 10 by the county auditor to the department of management: 11 (1) New construction. 12 (2) Additions or improvements to existing structures that 13 are not normal and necessary repairs under section 441.21, 14 subsection 8. 15 (3) Net boundary adjustments, including annexation, 16 severance, incorporation, consolidation, or discontinuance as 17 those terms are defined in section 368.1. 18 Sec. ___. Section 331.423, Code 2026, is amended by adding 19 the following new subsection: 20 NEW SUBSECTION . 2A. The amount of property tax dollars 21 calculated under this section includes those amounts budgeted 22 and received by the county as replacement taxes under chapter 23 437A or 437B, if applicable. 24 Sec. ___. EFFECTIVE DATE. This division of this Act takes 25 effect January 1, 2027. 26 Sec. ___. APPLICABILITY. This division of this Act applies 27 to property taxes and budgets for fiscal years beginning on or 28 after July 1, 2027. 29 DIVISION ___ 30 CITY PROPERTY TAXES AND BUDGETS 31 Sec. ___. Section 384.1, subsection 3, paragraph c, 32 subparagraph (1), Code 2026, is amended to read as follows: 33 (1) For each fiscal year beginning on or after July 1, 34 2024, but before July 1, 2028 2027 , subject to subparagraph 35 -3- S 5210.4563.S (2) 91 mb 3/ 82

(3), a city’s tax levy for the general fund, except for levies 1 authorized in section 384.12 , shall not exceed in any tax year 2 the greater of eight dollars and ten cents per thousand dollars 3 of assessed value used to calculate taxes for the budget year 4 and the adjusted city general fund levy rate, as adjusted under 5 subparagraph (2), if applicable. 6 Sec. ___. Section 384.1, subsection 3, paragraph d, Code 7 2026, is amended to read as follows: 8 d. For each fiscal year beginning on or after July 1, 2028, 9 a city’s tax levy rate for the general fund, except for levies 10 authorized in section 384.12 , shall not exceed eight dollars 11 and ten cents per thousand dollars of assessed value used to 12 calculate taxes in any fiscal year. For fiscal years beginning 13 on or after July 1, 2027, but before July 1, 2030, a city’s tax 14 levy rate for the general fund, except for levies authorized in 15 section 384.12, shall not exceed a levy rate per one thousand 16 dollars of assessed value equal to one thousand multiplied by 17 the quotient of one hundred two percent of the current fiscal 18 year’s actual property tax dollars certified for levy under 19 this subsection divided by the remainder of the total assessed 20 value used to calculate such taxes for the budget year minus 21 value attributable to new valuation. 22 Sec. ___. Section 384.1, subsection 3, Code 2026, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . e. For each fiscal year beginning on or 25 after July 1, 2030, a city’s tax levy rate for the general 26 fund, except for levies authorized in section 384.12, shall not 27 exceed the lesser of: 28 (1) A levy rate per one thousand dollars of assessed value 29 equal to one thousand multiplied by the quotient of one hundred 30 two percent of the current fiscal year’s actual property tax 31 dollars certified for levy under this subsection divided by 32 the remainder of the total assessed value used to calculate 33 such taxes for the budget year minus value attributable to new 34 valuation. 35 -4- S 5210.4563.S (2) 91 mb 4/ 82

(2) Eight dollars and ten cents per thousand dollars of 1 assessed value. 2 Sec. ___. Section 384.1, subsection 4, Code 2026, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . c. “New valuation” means the increase 5 from the current fiscal year to the budget year in taxable 6 valuation, as shown on the assessment roll due to the 7 following, the amount of each as reported under section 331.510 8 by the county auditor to the department of management: 9 (1) New construction. 10 (2) Additions or improvements to existing structures that 11 are not normal and necessary repairs under section 441.21, 12 subsection 8. 13 (3) Net boundary adjustments, including annexation, 14 severance, incorporation, consolidation, or discontinuance as 15 those terms are defined in section 368.1. 16 Sec. ___. Section 384.1, Code 2026, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 3A. The amount of property tax dollars 19 calculated under this section includes those amounts budgeted 20 and received by the city as replacement taxes under chapter 21 437A or 437B, if applicable. 22 Sec. ___. EFFECTIVE DATE. This division of this Act takes 23 effect January 1, 2027. 24 Sec. ___. APPLICABILITY. This division of this Act applies 25 to property taxes and budgets for fiscal years beginning on or 26 after July 1, 2027. 27 DIVISION ___ 28 RATE-LIMITED PROPERTY TAX LEVY RATES 29 Sec. ___. Section 24.48, Code 2026, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 6. The authority to suspend property tax 32 levy limitations under this section shall not apply to the 33 limitations of section 444.25. 34 Sec. ___. Section 312.2, subsection 5, paragraph a, 35 -5- S 5210.4563.S (2) 91 mb 5/ 82

unnumbered paragraph 1, Code 2026, is amended to read as 1 follows: 2 The treasurer of state, before making any allotments to 3 counties under this section , shall reduce the allotment to a 4 county for the secondary road fund by the amount by which the 5 total funds that the county transferred or provided during 6 the prior fiscal year under section 331.429, subsection 1 , 7 paragraphs “a” , “b” , “d” , and “e” , are less than seventy-five 8 fifty-one percent of the sum of the following: 9 Sec. ___. NEW SECTION . 444.25 Maximum property tax levy 10 rates —— adjustments. 11 1. For purposes of this section: 12 a. “Budget year” is the fiscal year beginning during the 13 calendar year in which a budget is certified. 14 b. “Current fiscal year” is the fiscal year ending during 15 the calendar year in which a budget for the budget year is 16 certified. 17 c. “Rate-limited property tax levy” includes any ad valorem 18 property tax levy limited by law to a specific property tax 19 levy rate for a fiscal year beginning on or after July 1, 2027, 20 expressed in statute as a specific amount of money due other 21 than a calculated amount, per one thousand dollars of assessed 22 value used to calculate taxes. “Rate-limited property tax 23 levy” also includes a levy for a county agricultural extension 24 under section 176A.10. This paragraph shall not be construed 25 to include the school district foundation levy under section 26 257.3, the county general services levy under section 331.423, 27 subsection 1, the county rural services levy under section 28 331.423, subsection 2, the city general fund levy under section 29 384.1, the physical plant and equipment levies under section 30 298.2, the school district bond tax under section 298.18, any 31 levy under chapter 28M, a levy under section 384.12, subsection 32 1, paragraph “b” , levied for operation and maintenance of a 33 regional transit district, any levy under chapter 347 or 347A, 34 and any levy under chapter 386. In addition, “rate-limited 35 -6- S 5210.4563.S (2) 91 mb 6/ 82

property tax levy” does not include levy rates used in the 1 calculations under section 312.2, subsection 5, paragraph “a” . 2 2. Except as provided in subsection 3, for the fiscal year 3 beginning July 1, 2027, and each fiscal year thereafter, each 4 rate-limited property tax levy shall, by operation of this 5 section and in addition to any applicable levy rate limitation 6 imposed by another provision of law, be limited to a levy rate 7 per one thousand dollars of assessed value that is equal to one 8 thousand multiplied by the quotient of one hundred two percent 9 of the current fiscal year’s actual property tax dollars 10 certified for such levy divided by the total assessed value 11 used to calculate such taxes for the budget year. 12 3. a. For the fiscal year beginning July 1, 2027, and each 13 fiscal year thereafter, if the rate limited property tax levy 14 was not imposed by the governmental entity in the immediately 15 preceding fiscal year, such levy may for the initial year of 16 imposition be imposed at a rate not to exceed the maximum rate 17 for such levy authorized by law. 18 b. If a budget year includes a voter-approved increase in 19 the authorized rate of a voter-approved rate-limited property 20 tax levy for which the increased rate was not approved for 21 imposition in the current fiscal year, such rate-limited 22 property tax levy may be imposed for that budget year at a rate 23 not to exceed the voter-approved rate without application of 24 subsection 2. 25 4. The amount of property tax dollars calculated under this 26 section includes those amounts budgeted and received by the 27 governmental entity as replacement taxes under chapter 437A or 28 437B, if applicable. 29 Sec. ___. NEW SECTION . 444.26 Use of bonds and indebtedness 30 for general operations —— prohibition. 31 1. For purposes of this section: 32 a. “General operations” means services or activities 33 generally funded from the governmental entity’s general fund, 34 which are necessary for the operation of the governmental 35 -7- S 5210.4563.S (2) 91 mb 7/ 82

entity, including salaries and benefits, or which are for the 1 health and welfare of the governmental entity’s citizens or 2 primarily intended to benefit all residents of the governmental 3 entity, but excluding direct and indirect capital expenditures 4 properly allocable under the Internal Revenue Code, as defined 5 in section 422.3, if the governmental entity were a taxpayer, 6 capital leases, and services financed by statutory funds other 7 than a debt service fund. 8 b. “Governmental entity” means any unit of government 9 or other public body or public corporation, including any 10 intergovernmental entity, that has the power to impose or 11 certify a property tax levy. 12 2. On or after July 1, 2026, the governing body of a 13 governmental entity shall not issue bonds or other indebtedness 14 payable from an ad valorem property tax levy for the purpose of 15 funding the general operations of the governmental entity or 16 otherwise use proceeds from the sale of bonds or issuance of 17 other indebtedness to fund general operations. 18 3. The department of management, following consultation 19 with the city finance committee and the county finance 20 committee, may adopt rules under chapter 17A for governmental 21 entities to implement this section. 22 Sec. ___. EFFECTIVE DATE. The following takes effect 23 January 1, 2027: 24 The section of this division of this Act amending section 25 312.2. 26 Sec. ___. APPLICABILITY. The following applies to fiscal 27 years beginning on or after July 1, 2027: 28 The section of this division of this Act amending section 29 312.2. 30 DIVISION ___ 31 FIRSTHOME IOWA ACCOUNTS 32 Sec. ___. Section 12G.2, Code 2026, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 6. Create strategies for coordination of 35 -8- S 5210.4563.S (2) 91 mb 8/ 82

the program with the FirstHome Iowa program trust established 1 in chapter 12L. 2 Sec. ___. NEW SECTION . 12L.1 FirstHome Iowa program —— 3 purpose and definitions. 4 1. The general assembly finds that the general welfare and 5 well-being of the state are directly related to homeownership 6 of the citizens of the state, and that a vital and valid 7 public purpose is served by the creation and implementation 8 of programs which encourage and make possible the attainment 9 of homeownership by the greatest number of citizens of the 10 state. The general welfare of the citizens of the state will 11 be enhanced by establishing a FirstHome Iowa program which 12 allows citizens of the state to invest money in a public trust 13 for future application to the payment of qualified homebuyer 14 expenses. The creation of the means of encouragement for 15 citizens to invest in such a program represents the carrying 16 out of a vital and valid public purpose. In order to make 17 available to the citizens of the state an opportunity to fund 18 future first-time homeownership, it is necessary that a public 19 trust be established in which moneys may be invested for future 20 use. 21 2. As used in this chapter, unless the context otherwise 22 requires: 23 a. “Administrative fund” means the administrative fund 24 established under section 12L.4. 25 b. “Beneficiary” means the individual designated by a 26 participation agreement to benefit from advance payments of 27 qualified homebuyer expenses on behalf of the beneficiary. 28 c. “First-time homebuyer” means an individual who is a 29 resident of Iowa and who does not own, either individually or 30 jointly, a single-family or multifamily residence, and who 31 has not previously owned or purchased, either individually or 32 jointly, a single-family or multifamily residence prior to the 33 date of the qualified purchase for which the eligible home 34 costs are paid or reimbursed from an account. 35 -9- S 5210.4563.S (2) 91 mb 9/ 82

d. “FirstHome Iowa program trust” or “trust” means the trust 1 created under section 12L.2. 2 e. “FirstHome Iowa program trust account” or “account” 3 means an account within the trust that was established for 4 the purpose of paying or reimbursing a beneficiary’s eligible 5 qualified homebuyer expenses in connection with a qualified 6 purchase. 7 f. “Individual” means a natural person. 8 g. “Participant” means an individual, individual’s legal 9 representative, trust, or estate that has entered into a 10 participation agreement under this chapter, either individually 11 or jointly with the individual’s spouse, for the advance 12 payment of qualified homebuyer expenses on behalf of a 13 beneficiary. 14 h. “Participation agreement” means an agreement between a 15 participant and the trust entered into under this chapter. 16 i. “Program fund” means the program fund established under 17 section 12L.4. 18 j. “Qualified homebuyer expenses” means any of the 19 following: 20 (1) A down payment or closing costs for the qualified 21 purchase of a single-family residence in Iowa that is to be the 22 homestead, as defined in section 425.11, of the beneficiary if 23 such beneficiary is a first-time homebuyer with respect to such 24 purchase. 25 (2) A cost, fee, tax, or payment incurred by, or charged 26 or assigned to, a beneficiary as part of the purchase under 27 subparagraph (1) and listed on the statement of receipts and 28 disbursements for the sale, including any statement prescribed 29 by 12 C.F.R. §1026.38, as amended. 30 (3) Any United States veterans administration funding 31 fee incurred by, or charged or assigned to, a beneficiary in 32 connection with a veterans administration home loan guaranty 33 program. 34 k. “Qualified purchase” means the purchase of a 35 -10- S 5210.4563.S (2) 91 mb 10/ 82

single-family residence in Iowa by the account’s beneficiary 1 for which the account’s beneficiary will use as a homestead, as 2 defined in section 425.11, one year or more after the date the 3 participant first opened the account. 4 l. “Resident” means the same as defined in section 422.4. 5 m. “Single-family residence” means a single-family residence 6 owned and occupied by a beneficiary as the beneficiary’s 7 homestead within the meaning of section 425.1, including but 8 not limited to a manufactured home, mobile home, condominium 9 unit, or cooperative. 10 Sec. ___. NEW SECTION . 12L.2 Creation of FirstHome Iowa 11 program trust. 12 A FirstHome Iowa program trust is created. The treasurer of 13 state is the trustee of the trust, and has all powers necessary 14 to carry out and effectuate the purposes, objectives, and 15 provisions of this chapter pertaining to the trust, including 16 the power to do all of the following: 17 1. Make and enter into contracts necessary for the 18 administration of the trust created under this chapter. 19 2. Enter into agreements with any financial institution, 20 the state, or any federal or other state agency, or other 21 entity as required to implement this chapter. 22 3. Carry out the duties and obligations of the trust 23 pursuant to this chapter. 24 4. Accept any grants, gifts, legislative appropriations, 25 and other moneys from the state, any unit of federal, state, or 26 local government, or any other person, firm, partnership, or 27 corporation which the treasurer of state shall deposit into the 28 administrative fund or the program fund. 29 5. Carry out studies and projections so the treasurer of 30 state may advise participants regarding present and estimated 31 future qualified homebuyer expenses and levels of financial 32 participation in the trust required in order to enable 33 participants to achieve their qualifying purchase objectives. 34 6. Participate in any federal, state, or local governmental 35 -11- S 5210.4563.S (2) 91 mb 11/ 82

program for the benefit of the trust. 1 7. Procure insurance against any loss in connection with the 2 property, assets, or activities of the trust. 3 8. Enter into participation agreements with participants. 4 9. Make payments to or on behalf of beneficiaries for 5 qualified homebuyer expenses pursuant to participation 6 agreements. 7 10. Make refunds to participants upon the termination 8 of participation agreements, and partial nonqualified 9 distributions to participants, pursuant to the provisions, 10 limitations, and restrictions set forth in this chapter. 11 11. Invest moneys from the program fund in any investments 12 which are determined by the treasurer of state to be 13 appropriate. 14 12. Engage investment advisors, if necessary, to assist in 15 the investment of trust assets. 16 13. Contract for goods and services and engage personnel 17 as necessary, including consultants, actuaries, managers, 18 legal counsel, and auditors for the purpose of rendering 19 professional, managerial, and technical assistance and advice 20 to the treasurer of state regarding trust administration and 21 operation. 22 14. Establish, impose, and collect administrative fees 23 and charges in connection with transactions of the trust for 24 deposit in the administrative fund and provide for reasonable 25 service charges. 26 15. Administer the funds of the trust. 27 16. Adopt rules pursuant to chapter 17A for the 28 administration of the trust. 29 Sec. ___. NEW SECTION . 12L.3 Participation agreements for 30 trust. 31 The trust may enter into participation agreements with 32 participants on behalf of beneficiaries pursuant to the 33 following terms and agreements: 34 1. Each participation agreement may require a participant 35 -12- S 5210.4563.S (2) 91 mb 12/ 82

to agree to invest a specific amount of money in the trust 1 for a specific period of time for the benefit of a specific 2 beneficiary. A participant shall not be required to make an 3 annual contribution on behalf of a beneficiary. The maximum 4 contribution that may be deducted for Iowa income tax purposes 5 shall be the amount contributed by the participant during the 6 applicable tax year, not to exceed five thousand five hundred 7 dollars per beneficiary per year adjusted annually to reflect 8 increases in the consumer price index. 9 2. The execution of a participation agreement by the 10 trust shall not guarantee in any way that qualified homebuyer 11 expenses will be equal to projections and estimates provided by 12 the trust or that the beneficiary named in any participation 13 agreement will qualify for a mortgage, home loan, or other 14 forms of credit for a qualified purchase. 15 3. a. A beneficiary under a participation agreement may be 16 changed as permitted under rules adopted by the treasurer of 17 state upon written request of the participant as long as the 18 substitute beneficiary is eligible for participation. 19 b. Participation agreements may otherwise be freely amended 20 throughout their terms in order to enable participants to 21 increase or decrease the level of participation, change the 22 designation of beneficiaries, and carry out similar matters as 23 authorized by rule. 24 4. Each participation agreement shall provide that the 25 participation agreement may be canceled upon the terms and 26 conditions, and upon payment of applicable fees and costs set 27 forth and contained in the rules adopted by the treasurer of 28 state. 29 5. A participant may designate a successor in accordance 30 with rules adopted by the treasurer of state. The designated 31 successor shall succeed to the ownership of the account in 32 the event of the death of the participant. In the event a 33 participant dies and has not designated a successor to the 34 account, the following criteria shall apply: 35 -13- S 5210.4563.S (2) 91 mb 13/ 82

a. The beneficiary of the account, if eighteen years of 1 age or older, shall become the owner of the account as well as 2 remain the beneficiary upon filing the appropriate forms in 3 accordance with rules adopted by the treasurer of state. 4 b. If the beneficiary of the account is under the age of 5 eighteen, account ownership shall be transferred to the first 6 surviving parent or other legal guardian of the beneficiary to 7 file the appropriate forms in accordance with rules adopted by 8 the treasurer of state. 9 Sec. ___. NEW SECTION . 12L.4 FirstHome Iowa program and 10 administrative funds —— investment and payments. 11 1. a. The treasurer of state shall segregate moneys 12 received by the trust into two funds: the FirstHome Iowa 13 program fund and the administrative fund to be used for 14 administration of the program. 15 b. All moneys paid by participants in connection with 16 participation agreements shall be deposited as received into 17 separate accounts within the program fund. 18 c. Contributions to the trust made by participants may only 19 be made in the form of cash. 20 d. A participant or beneficiary may, directly or indirectly, 21 direct the investment of any contributions to the trust or any 22 earnings thereon no more than four times in a calendar year. 23 2. Moneys accrued by participants in the program fund of the 24 trust may be used for payments to or on behalf of a beneficiary 25 for qualified homebuyer expenses. 26 Sec. ___. NEW SECTION . 12L.5 Cancellation of agreements. 27 A participant may cancel a participation agreement at will. 28 Upon cancellation of a participation agreement, a participant 29 shall be entitled to the return of the participant’s account 30 balance. 31 Sec. ___. NEW SECTION . 12L.6 Ownership of payments and 32 investment income —— transfer of ownership rights. 33 1. a. A participant retains ownership of all payments 34 made under a participation agreement up to the date of 35 -14- S 5210.4563.S (2) 91 mb 14/ 82

utilization for payment of qualified homebuyer expenses for the 1 beneficiary. 2 b. All income derived from the investment of the payments 3 made by the participant shall be considered to be held in trust 4 for the benefit of the beneficiary. 5 2. In the event the FirstHome Iowa program is terminated 6 prior to payment of qualified homebuyer expenses for the 7 beneficiary, the participant is entitled to a refund of the 8 participant’s account balance. 9 3. Any amounts which may be paid to any person or persons 10 pursuant to the FirstHome Iowa program trust but which are not 11 listed in this section are owned by the trust. 12 4. A participant may transfer ownership rights to another 13 participant or may transfer funds to another account under the 14 trust. The transfer shall be made and the property distributed 15 in accordance with rules adopted by the treasurer of state or 16 with the terms of the participation agreement. 17 5. A participant shall not be entitled to utilize any 18 interest in the trust as security for a loan. 19 Sec. ___. NEW SECTION . 12L.7 Annual audited financial 20 report to governor and general assembly. 21 1. a. The treasurer of state shall submit an annual 22 audited financial report, prepared in accordance with generally 23 accepted accounting principles, on the operations of the trust 24 by November 1 to the governor and the general assembly. 25 b. The annual audit shall be made either by the auditor 26 of state or by an independent certified public accountant 27 designated by the auditor of state and shall include direct and 28 indirect costs attributable to the use of outside consultants, 29 independent contractors, and any other persons who are not 30 state employees. 31 2. The annual audit shall be supplemented by all of the 32 following information prepared by the treasurer of state: 33 a. Any related studies or evaluations prepared in the 34 preceding year. 35 -15- S 5210.4563.S (2) 91 mb 15/ 82

b. A summary of the benefits provided by the trust including 1 the number of participants and beneficiaries in the trust. 2 c. Any other information which is relevant in order to make 3 a full, fair, and effective disclosure of the operations of the 4 trust. 5 Sec. ___. NEW SECTION . 12L.8 Tax considerations. 6 State income tax treatment of the FirstHome Iowa program 7 trust shall be as provided in section 422.7, subsections 46 and 8 47. 9 Sec. ___. NEW SECTION . 12L.9 Property rights to assets in 10 trust. 11 1. The assets of the trust shall at all times be preserved, 12 invested, and expended solely and only for the purposes of 13 the trust and shall be held in trust for the participants and 14 beneficiaries. 15 2. No property rights in the trust shall exist in favor of 16 the state. 17 3. The assets of the trust shall not be transferred or used 18 by the state for any purposes other than the purposes of the 19 trust. 20 Sec. ___. NEW SECTION . 12L.10 Construction. 21 This chapter shall be construed liberally in order to 22 effectuate its purpose. 23 Sec. ___. Section 232D.503, subsection 6, Code 2026, is 24 amended by adding the following new paragraph: 25 NEW PARAGRAPH . g. A FirstHome Iowa program trust account 26 established for the minor pursuant to chapter 12L. 27 Sec. ___. Section 422.7, Code 2026, is amended by adding the 28 following new subsections: 29 NEW SUBSECTION . 46. a. Subtract the contribution that may 30 be deducted for Iowa income tax purposes as a participant in 31 the FirstHome Iowa program trust pursuant to section 12L.3, 32 subsection 1. For purposes of this paragraph, a participant 33 who makes a contribution on or before the date prescribed in 34 section 422.21 for making and filing an individual income tax 35 -16- S 5210.4563.S (2) 91 mb 16/ 82

return, excluding extensions, or the date for making and filing 1 an individual income tax return determined by the director 2 pursuant to an order issued under section 421.17, subsection 3 30, may elect to be deemed to have made the contribution on the 4 last day of the preceding calendar year. The director, after 5 consultation with the treasurer of state, shall prescribe by 6 rule the manner and method by which a participant may make an 7 election authorized by the preceding sentence. 8 b. Add the amount resulting from the cancellation of 9 a participation agreement refunded to the taxpayer as a 10 participant in the FirstHome Iowa program trust to the extent 11 previously deducted as a contribution to the trust. 12 c. Add, to the extent previously deducted as a contribution 13 to the trust, the amount resulting from a withdrawal or 14 transfer made by the taxpayer from the FirstHome Iowa program 15 trust for purposes other than the payment of qualified 16 homebuyer expenses. 17 NEW SUBSECTION . 47. Subtract, to the extent included, 18 income from interest and earnings received from the FirstHome 19 Iowa program trust created in chapter 12L. 20 Sec. ___. Section 541B.4, Code 2026, is amended by adding 21 the following new subsections: 22 NEW SUBSECTION . 5. Withdrawal for deposit into FirstHome 23 Iowa program trust account. First-time homebuyer account 24 balances under this chapter may be withdrawn without penalty or 25 taxation in this state if such withdrawal is deposited in an 26 account within the FirstHome Iowa program trust under chapter 27 12L within thirty days of the withdrawal. The treasurer of 28 state may by rule provide for the direct transfer of moneys 29 within an account under this chapter to a FirstHome Iowa 30 program trust account and such transfer shall not be subject to 31 penalty or taxation in this state. 32 NEW SUBSECTION . 6. No new accounts. New accounts shall not 33 be established under this chapter on or after July 1, 2026. 34 Sec. ___. Section 627.6, Code 2026, is amended by adding the 35 -17- S 5210.4563.S (2) 91 mb 17/ 82

following new subsection: 1 NEW SUBSECTION . 18. The debtor’s interest, whether as 2 participant or beneficiary, in contributions and assets, 3 including the accumulated earnings and market increases in 4 value, held in an account in the FirstHome Iowa program trust 5 organized under chapter 12L. 6 Sec. ___. Section 633.108, subsection 2, Code 2026, is 7 amended by adding the following new paragraph: 8 NEW PARAGRAPH . e. A FirstHome Iowa program trust account 9 established for the minor pursuant to chapter 12L. 10 Sec. ___. Section 633.555, subsection 1, Code 2026, is 11 amended by adding the following new paragraph: 12 NEW PARAGRAPH . f. An account owner or participant under 13 a FirstHome Iowa program trust account established for the 14 protected person pursuant to chapter 12L. 15 Sec. ___. Section 633.678, subsection 1, Code 2026, is 16 amended by adding the following new paragraph: 17 NEW PARAGRAPH . f. An account owner or participant under 18 a FirstHome Iowa program trust account established for the 19 protected person pursuant to chapter 12L. 20 Sec. ___. Section 633.681, subsection 1, Code 2026, is 21 amended by adding the following new paragraph: 22 NEW PARAGRAPH . e. An account owner or participant under 23 a FirstHome Iowa program trust account established for the 24 protected person pursuant to chapter 12L. 25 Sec. ___. APPLICABILITY. The following applies to 26 contributions made under chapter 12L on or after July 1, 2026, 27 for tax years ending on or after that date: 28 The section of this division of this Act enacting section 29 422.7, subsections 46 and 47. 30 DIVISION ___ 31 SCHOOL TAXES 32 Sec. ___. Section 257.3, subsection 1, paragraph a, Code 33 2026, is amended to read as follows: 34 a. (1) Except as provided in subsections 2 and 3 , a school 35 -18- S 5210.4563.S (2) 91 mb 18/ 82

district shall cause to be levied each budget year beginning 1 before July 1, 2028 , for the school general fund, a foundation 2 property tax equal to five dollars and forty cents per thousand 3 dollars of assessed valuation on all taxable property in the 4 district. The county auditor shall spread the foundation levy 5 over all taxable property in the district. 6 (2) Except as provided in subsections 2 and 3, a school 7 district shall cause to be levied for the budget year beginning 8 July 1, 2028, for the school general fund, a foundation 9 property tax equal to five dollars and ten cents per thousand 10 dollars of assessed valuation on all taxable property in the 11 district. The county auditor shall spread the foundation levy 12 over all taxable property in the district. 13 (3) Except as provided in subsections 2 and 3, a school 14 district shall cause to be levied for the budget year beginning 15 July 1, 2029, and each succeeding budget year, for the school 16 general fund, a foundation property tax equal to four dollars 17 and ninety cents per thousand dollars of assessed valuation 18 on all taxable property in the district. The county auditor 19 shall spread the foundation levy over all taxable property in 20 the district. 21 Sec. ___. Section 257.3, subsection 2, paragraphs a and b, 22 Code 2026, are amended to read as follows: 23 a. Notwithstanding subsection 1 , a reorganized school 24 district shall cause a foundation property tax of four dollars 25 and forty cents at a rate equal to one dollar per thousand 26 dollars of assessed valuation less than the rate under 27 subsection 1, paragraph “a” , for the applicable budget year to 28 be levied on all taxable property which, in the year preceding 29 a reorganization, was within a school district affected by the 30 reorganization as defined in section 275.1 , or in the year 31 preceding a dissolution was a part of a school district that 32 dissolved if the dissolution proposal has been approved by the 33 director of the department of education pursuant to section 34 275.55 . 35 -19- S 5210.4563.S (2) 91 mb 19/ 82

b. In succeeding school years, the foundation property tax 1 levy on that portion shall be increased to the rate of four 2 dollars and ninety fifty cents per thousand dollars of assessed 3 valuation less than the rate applicable to the budget year 4 under subsection 1, paragraph “a” , for the first succeeding 5 year, five dollars and fifteen twenty-five cents per thousand 6 dollars of assessed valuation less than the rate applicable 7 to the budget year under subsection 1, paragraph “a” , for the 8 second succeeding year, and five dollars and forty cents per 9 thousand dollars of assessed valuation the rate applicable to 10 the budget year under subsection 1, paragraph “a” , for the third 11 succeeding year and each year thereafter. 12 Sec. ___. Section 425A.3, subsection 1, Code 2026, is 13 amended to read as follows: 14 1. The family farm tax credit fund shall be apportioned 15 each year in the manner provided in this chapter so as to give 16 a credit against the tax on each eligible tract of agricultural 17 land within the several school districts of the state in which 18 the levy for the general school fund exceeds five dollars and 19 forty cents per thousand dollars of assessed value the levy 20 rate under section 257.3, subsection 1, paragraph “a” . The 21 amount of the credit on each eligible tract of agricultural 22 land shall be the amount the tax levied for the general school 23 fund exceeds the amount of tax which would be levied on each 24 eligible tract of agricultural land were the levy for the 25 general school fund five dollars and forty cents per thousand 26 dollars of assessed value the levy rate under section 257.3, 27 subsection 1, paragraph “a” , for the previous year. However, 28 in the case of a deficiency in the family farm tax credit fund 29 to pay the credits in full, the credit on each eligible tract 30 of agricultural land in the state shall be proportionate and 31 applied as provided in this chapter . 32 Sec. ___. Section 425A.5, Code 2026, is amended to read as 33 follows: 34 425A.5 Computation by county auditor. 35 -20- S 5210.4563.S (2) 91 mb 20/ 82

The family farm tax credit allowed each year shall be 1 computed as follows: On or before April 1, the county auditor 2 shall list by school districts all tracts of agricultural 3 land which are entitled to credit, the taxable value for the 4 previous year, the budget from each school district for the 5 previous year, and the tax rate determined for the general 6 fund of the school district in the manner prescribed in 7 section 444.3 for the previous year, and if the tax rate is in 8 excess of five dollars and forty cents per thousand dollars of 9 assessed value the levy rate under section 257.3, subsection 10 1, paragraph “a” , the auditor shall multiply the tax levy which 11 is in excess of five dollars and forty cents per thousand 12 dollars of assessed value the levy rate under section 257.3, 13 subsection 1, paragraph “a” , by the total taxable value of the 14 agricultural land entitled to credit in the school district, 15 and on or before April 1, certify the total amount of credit 16 and the total number of acres entitled to the credit to the 17 department of revenue. 18 Sec. ___. Section 426.3, Code 2026, is amended to read as 19 follows: 20 426.3 Where credit given. 21 The agricultural land credit fund shall be apportioned each 22 year in the manner hereinafter provided so as to give a credit 23 against the tax on each tract of agricultural lands within the 24 several school districts of the state in which the levy for 25 the general school fund exceeds five dollars and forty cents 26 per thousand dollars of assessed value the levy rate under 27 section 257.3, subsection 1, paragraph “a” ; the amount of such 28 credit on each tract of such lands shall be the amount the tax 29 levied for the general school fund exceeds the amount of tax 30 which would be levied on said tract of such lands were the 31 levy for the general school fund five dollars and forty cents 32 per thousand dollars of assessed value the levy rate under 33 section 257.3, subsection 1, paragraph “a” , for the previous 34 year, except in the case of a deficiency in the agricultural 35 -21- S 5210.4563.S (2) 91 mb 21/ 82

land credit fund to pay said credits in full, in which case the 1 credit on each eligible tract of such lands in the state shall 2 be proportionate and shall be applied as hereinafter provided. 3 Sec. ___. Section 426.6, subsection 1, Code 2026, is amended 4 to read as follows: 5 1. The agricultural land tax credit allowed each year 6 shall be computed as follows: On or before April 1, the 7 county auditor shall list by school districts all tracts of 8 agricultural lands which are entitled to credit, together with 9 the taxable value for the previous year, together with the 10 budget from each school district for the previous year, and the 11 tax rate determined for the general fund of the district in 12 the manner prescribed in section 444.3 for the previous year, 13 and if such tax rate is in excess of five dollars and forty 14 cents per thousand dollars of assessed value the levy rate 15 under section 257.3, subsection 1, paragraph “a” , the auditor 16 shall multiply the tax levy which is in excess of five dollars 17 and forty cents per thousand dollars of assessed value the 18 levy rate under section 257.3, subsection 1, paragraph “a” , by 19 the total taxable value of the agricultural lands entitled to 20 credit in the district, and on or before April 1, certify the 21 amount to the department of revenue. 22 Sec. ___. ADJUSTMENT OF CALCULATIONS. For property tax 23 credits under chapters 425A and 426 for property taxes due and 24 payable in the fiscal year beginning July 1, 2027, the tax rate 25 determined for the general fund of the school district in the 26 manner prescribed in section 444.3 for the previous year shall 27 be determined using the appropriate property tax levy rate 28 under section 257.3, as amended in this division of this Act. 29 Sec. ___. APPLICABILITY. This division of this Act applies 30 to fiscal years and school budget years beginning on or after 31 July 1, 2027. 32 DIVISION ___ 33 SECURE AN ADVANCED VISION FOR EDUCATION FUND —— EQUITY TRANSFER 34 PERCENTAGE —— FUTURE REPEAL 35 -22- S 5210.4563.S (2) 91 mb 22/ 82

Sec. ___. Section 423.2, subsection 12, Code 2026, is 1 amended to read as follows: 2 12. The sales tax rate of six percent is reduced to five 3 percent on January 1, 2051 2071 . 4 Sec. ___. Section 423.2A, subsection 2, paragraph c, Code 5 2026, is amended to read as follows: 6 c. Transfer one-sixth of the remaining revenues to the 7 secure an advanced vision for education fund created in section 8 423F.2 . This paragraph “c” is repealed January 1, 2051 2071 . 9 Sec. ___. Section 423.5, subsection 4, Code 2026, is amended 10 to read as follows: 11 4. The use tax rate of six percent is reduced to five 12 percent on January 1, 2051 2071 . 13 Sec. ___. Section 423.43, subsection 1, paragraph b, Code 14 2026, is amended to read as follows: 15 b. Subsequent to the deposit into the general fund of 16 the state and after the transfer of such revenues collected 17 under chapter 423B , the department shall transfer one-sixth of 18 such remaining revenues to the secure an advanced vision for 19 education fund created in section 423F.2 . This paragraph is 20 repealed January 1, 2051 2071 . 21 Sec. ___. Section 423F.2, subsection 3, paragraph b, 22 subparagraph (2), subparagraph division (b), Code 2026, is 23 amended to read as follows: 24 (b) For each fiscal year beginning on or after July 1, 25 2020, but before July 1, 2026, the equity transfer percentage 26 is equal to the equity transfer percentage for the immediately 27 preceding fiscal year, unless the amount of moneys available 28 in the secure an advanced vision for education fund in the 29 immediately preceding fiscal year equals or exceeds one hundred 30 two percent of the amount of moneys available in the fund for 31 the fiscal year prior to the immediately preceding fiscal year, 32 in which case the equity transfer percentage shall be the 33 equity transfer percentage for the immediately preceding fiscal 34 year plus one percent subject to the limitation in subparagraph 35 -23- S 5210.4563.S (2) 91 mb 23/ 82

division (c). 1 Sec. ___. Section 423F.2, subsection 3, paragraph b, 2 subparagraph (2), subparagraph division (c), Code 2026, is 3 amended by striking the subparagraph division and inserting in 4 lieu thereof the following: 5 (c) (i) For the fiscal year beginning July 1, 2026, the 6 equity transfer percentage is twelve and one-half percent. 7 (ii) For the fiscal year beginning July 1, 2027, the equity 8 transfer percentage is fifteen percent. 9 (iii) For the fiscal year beginning July 1, 2028, the equity 10 transfer percentage is seventeen and one-half percent. 11 (iv) For the fiscal year beginning July 1, 2029, the equity 12 transfer percentage is twenty-two and one-half percent. 13 (v) For the fiscal year beginning July 1, 2030, and each 14 fiscal year thereafter, the equity transfer percentage is 15 twenty-five percent. 16 Sec. ___. Section 423F.6, Code 2026, is amended to read as 17 follows: 18 423F.6 Repeal. 19 This chapter is repealed January 1, 2051 2071 . 20 Sec. ___. SCHOOL DISTRICT FUNDING RECONCILIATION. 21 For amounts allocated under section 423F.2 for fiscal 22 years beginning on or after July 1, 2026, the department of 23 management shall adjust or reconcile actual amounts to be 24 received by school districts in the fiscal year immediately 25 following the fiscal year during which the revenues were 26 collected. 27 DIVISION ___ 28 ELDERLY AND DISABLED PROPERTY TAX CREDIT AND RENT REIMBURSEMENT 29 Sec. ___. Section 425.24, Code 2026, is amended to read as 30 follows: 31 425.24 Maximum property tax for purpose of credit or 32 reimbursement. 33 For claimants under section 425.17, subsection 2 , paragraph 34 “a” , subparagraphs (1) and (2), and for the calculation under 35 -24- S 5210.4563.S (2) 91 mb 24/ 82

section 425.23, subsection 1 , paragraph “c” , subparagraph (1), 1 in any case in which property taxes due or rent constituting 2 property taxes paid for any household exceeds one thousand 3 five hundred dollars, the amount of property taxes due or 4 rent constituting property taxes paid shall be deemed to have 5 been one thousand five hundred dollars for purposes of this 6 subchapter . 7 Sec. ___. APPLICABILITY. 8 1. This division of this Act applies to claims under chapter 9 425, subchapter II, for credits against property taxes due and 10 payable in fiscal years beginning on or after July 1, 2027. 11 2. This division of this Act applies to claims under chapter 12 425, subchapter II, for reimbursement for rent constituting 13 property taxes paid in base years beginning on or after January 14 1, 2026. 15 DIVISION ___ 16 PROPERTY CLASSIFICATIONS AND ASSESSMENT LIMITATIONS 17 Sec. ___. Section 386.8, Code 2026, is amended to read as 18 follows: 19 386.8 Operation tax. 20 A city may establish a self-supported improvement district 21 operation fund, and may certify taxes not to exceed the 22 rate limitation as established in the ordinance creating the 23 district, or any amendment thereto, each year to be levied 24 for the fund against all of the property in the district, 25 for the purpose of paying the administrative expenses of 26 the district, which may include but are not limited to 27 administrative personnel salaries, a separate administrative 28 office, planning costs including consultation fees, engineering 29 fees, architectural fees, and legal fees and all other expenses 30 reasonably associated with the administration of the district 31 and the fulfilling of the purposes of the district. The taxes 32 levied for this fund may also be used for the purpose of paying 33 maintenance expenses of improvements or self-liquidating 34 improvements for a specified length of time with one or more 35 -25- S 5210.4563.S (2) 91 mb 25/ 82

options to renew if such is clearly stated in the petition 1 which requests the council to authorize construction of the 2 improvement or self-liquidating improvement, whether or not 3 such petition is combined with the petition requesting creation 4 of a district. Parcels of property which are assessed as 5 residential property for property tax purposes are exempt from 6 the tax levied under this section except residential properties 7 within a duly designated historic district or property 8 classified as residential multiresidential property under 9 section 441.21, subsection 14 13 , paragraph “a” , subparagraph 10 (6) (5) . A tax levied under this section is not subject to the 11 levy limitation in section 384.1 . 12 Sec. ___. Section 386.9, Code 2026, is amended to read as 13 follows: 14 386.9 Capital improvement tax. 15 A city may establish a capital improvement fund for a 16 district and may certify taxes, not to exceed the rate 17 established by the ordinance creating the district, or any 18 subsequent amendment thereto, each year to be levied for 19 the fund against all of the property in the district, for 20 the purpose of accumulating moneys for the financing or 21 payment of a part or all of the costs of any improvement or 22 self-liquidating improvement. However, parcels of property 23 which are assessed as residential property for property tax 24 purposes are exempt from the tax levied under this section 25 except residential properties within a duly designated historic 26 district or property classified as residential multiresidential 27 property under section 441.21, subsection 14 13 , paragraph “a” , 28 subparagraph (6) (5) . A tax levied under this section is not 29 subject to the levy limitations in section 384.1 or 384.7 . 30 Sec. ___. Section 386.10, Code 2026, is amended to read as 31 follows: 32 386.10 Debt service tax. 33 A city shall establish a self-supported municipal 34 improvement district debt service fund whenever any 35 -26- S 5210.4563.S (2) 91 mb 26/ 82

self-supported municipal improvement district bonds are issued 1 and outstanding, other than revenue bonds, and shall certify 2 taxes to be levied against all of the property in the district 3 for the debt service fund in the amount necessary to pay 4 interest as it becomes due and the amount necessary to pay, 5 or to create a sinking fund to pay, the principal at maturity 6 of all self-supported municipal improvement district bonds as 7 authorized in section 386.11 , issued by the city. However, 8 parcels of property which are assessed as residential property 9 for property tax purposes at the time of the issuance of the 10 bonds are exempt from the tax levied under this section until 11 the parcels are no longer assessed as residential property 12 or until the residential properties are designated as a part 13 of a historic district or property classified as residential 14 multiresidential property under section 441.21, subsection 14 15 13 , paragraph “a” , subparagraph (6) (5) . 16 Sec. ___. Section 404.2, subsection 2, paragraph f, Code 17 2026, is amended to read as follows: 18 f. A statement specifying whether the revitalization is 19 applicable to none, some, or all of the property assessed as 20 residential, multiresidential, agricultural, commercial, or 21 industrial property within the designated area or a combination 22 thereof and whether the revitalization is for rehabilitation 23 and additions to existing buildings or new construction or 24 both. If revitalization is made applicable only to some 25 property within an assessment classification, the definition of 26 that subset of eligible property must be by uniform criteria 27 which further some planning objective identified in the plan. 28 The city shall state how long it is estimated that the area 29 shall remain a designated revitalization area which time 30 shall be longer than one year from the date of designation 31 and shall state any plan by the city to issue revenue bonds 32 for revitalization projects within the area. For a county, 33 a revitalization area shall include only property which 34 will be used as industrial property, commercial property, 35 -27- S 5210.4563.S (2) 91 mb 27/ 82

multiresidential property, or residential property. However, a 1 county shall not provide a tax exemption under this chapter to 2 commercial property , multiresidential property, or residential 3 property which is located within the limits of a city. 4 Sec. ___. Section 404.3, subsection 4, paragraph a, Code 5 2026, is amended by striking the paragraph and inserting in 6 lieu thereof the following: 7 a. All qualified real estate assessed as any of the 8 following is eligible to receive a one hundred percent 9 exemption from taxation on the actual value added by the 10 improvements: 11 (1) Residential property. 12 (2) Commercial property if the commercial property 13 consists of three or more separate living quarters with at 14 least seventy-five percent of the space used for residential 15 purposes. 16 (3) Multiresidential property if the multiresidential 17 property consists of three or more separate living quarters 18 with at least seventy-five percent of the space used for 19 residential purposes. 20 Sec. ___. Section 404.3A, Code 2026, is amended to read as 21 follows: 22 404.3A Residential development area exemption. 23 Notwithstanding the schedules provided for in section 404.3 , 24 all qualified real estate assessed as residential property or 25 multiresidential property , excluding property classified as 26 residential multiresidential property under section 441.21, 27 subsection 14 13 , paragraph “a” , subparagraph (6) (5) , in an 28 area designated under section 404.1, subsection 5 , is eligible 29 to receive an exemption from taxation on the first seventy-five 30 thousand dollars of actual value added by the improvements. 31 The exemption is for a period of five years. 32 Sec. ___. Section 404.3D, Code 2026, is amended to read as 33 follows: 34 404.3D Exemptions for residential and multiresidential 35 -28- S 5210.4563.S (2) 91 mb 28/ 82

property. 1 For revitalization areas established under this chapter 2 on or after July 1, 2024, and for first-year exemption 3 applications for property located in a revitalization area in 4 existence on July 1, 2024, filed on or after July 1, 2024, an 5 exemption authorized under this chapter for property that is 6 residential property or multiresidential property shall not 7 apply to property tax levies imposed by a school district. 8 Sec. ___. Section 441.21, subsection 2, Code 2026, is 9 amended to read as follows: 10 2. In the event market value of the property being assessed 11 cannot be readily established in the foregoing manner, then 12 the assessor may determine the value of the property using the 13 other uniform and recognized appraisal methods including its 14 productive and earning capacity, if any, industrial conditions, 15 its cost, physical and functional depreciation and obsolescence 16 and replacement cost, and all other factors which would assist 17 in determining the fair and reasonable market value of the 18 property but the actual value shall not be determined by use 19 of only one such factor. The following shall not be taken into 20 consideration: Special value or use value of the property to 21 its present owner, and the goodwill or value of a business 22 which uses the property as distinguished from the value of 23 the property as property. In addition, for assessment years 24 beginning on or after January 1, 2018, and unless otherwise 25 required for property valued by the department of revenue 26 pursuant to chapters 428 , 437 , and 438 , the assessor shall not 27 take into consideration and shall not request from any person 28 sales or receipts data, expense data, balance sheets, bank 29 account information, or other data related to the financial 30 condition of a business operating in whole or in part on the 31 property if the property is both classified as commercial or 32 industrial property and owned and used by the owner of the 33 business. However, in assessing property that is rented or 34 leased to low-income individuals and families as authorized by 35 -29- S 5210.4563.S (2) 91 mb 29/ 82

section 42 of the Internal Revenue Code, as amended, and which 1 section limits the amount that the individual or family pays 2 for the rental or lease of units in the property, the assessor 3 shall, unless the owner elects to withdraw the property from 4 the assessment procedures for section 42 property, use the 5 productive and earning capacity from the actual rents received 6 as a method of appraisal and shall take into account the extent 7 to which that use and limitation reduces the market value of 8 the property. The assessor shall not consider any tax credit 9 equity or other subsidized financing as income provided to 10 the property in determining the assessed value. The property 11 owner shall notify the assessor when property is withdrawn 12 from section 42 eligibility under the Internal Revenue Code 13 or if the owner elects to withdraw the property from the 14 assessment procedures for section 42 property under this 15 subsection . The property shall not be subject to section 42 16 assessment procedures for the assessment year for which section 17 42 eligibility is withdrawn or an election is made. This 18 notification must be provided to the assessor no later than 19 March 1 of the assessment year or the owner will be subject to a 20 penalty of five hundred dollars for that assessment year. The 21 penalty shall be collected at the same time and in the same 22 manner as regular property taxes. An election to withdraw 23 from the assessment procedures for section 42 property is 24 irrevocable. Property that is withdrawn from the assessment 25 procedures for section 42 property shall be classified and 26 assessed as residential multiresidential property unless the 27 property otherwise fails to meet the requirements of subsection 28 14 13 . Upon adoption of uniform rules by the department of 29 revenue or succeeding authority covering assessments and 30 valuations of such properties, the valuation on such properties 31 shall be determined in accordance with such rules and in 32 accordance with forms and guidelines contained in the real 33 property appraisal manual prepared by the department as updated 34 from time to time for assessment purposes to assure uniformity, 35 -30- S 5210.4563.S (2) 91 mb 30/ 82

but such rules, forms, and guidelines shall not be inconsistent 1 with or change the foregoing means of determining the actual, 2 market, taxable, and assessed values. 3 Sec. ___. Section 441.21, subsection 4, paragraph a, 4 subparagraph (3), Code 2026, is amended to read as follows: 5 (3) For valuations established for assessment years 6 beginning on or after January 1, 2022, but before January 1, 7 2027, the calculation of the dividend for residential property 8 under this subsection shall exclude the value of all property 9 described in subsection 14 , paragraph “a” , subparagraphs (2), 10 (3), (4), (5), and (6), Code 2026, and the property described 11 in subsection 14 , paragraph “a” , subparagraph (7), Code 2026, 12 that contains three or more separate dwelling units. 13 Sec. ___. Section 441.21, subsection 4, paragraph b, 14 subparagraph (2), Code 2026, is amended to read as follows: 15 (2) For valuations established for assessment years 16 beginning on or after January 1, 2022, but before January 1, 17 2027, the calculation of the divisor for residential property 18 under this subsection shall exclude the value of all property 19 described in subsection 14 , paragraph “a” , subparagraphs (2), 20 (3), (4), (5), and (6), Code 2026, and the property described 21 in subsection 14 , paragraph “a” , subparagraph (7), Code 2026, 22 that contains three or more separate dwelling units. 23 Sec. ___. Section 441.21, subsection 5, paragraph f, 24 subparagraph (2), Code 2026, is amended to read as follows: 25 (2) “Parcel” means the same as defined in section 445.1 . 26 “Parcel” also means that portion of a parcel assigned a 27 classification of commercial property or industrial property 28 pursuant to section 441.21, subsection 13, paragraph “c” , or 29 subsection 14 , paragraph “b” , Code 2026, as applicable . 30 Sec. ___. Section 441.21, subsection 8, paragraph b, Code 31 2026, is amended to read as follows: 32 b. Notwithstanding paragraph “a” , any construction or 33 installation of a solar energy system on property classified 34 as agricultural, residential, multiresidential, commercial, or 35 -31- S 5210.4563.S (2) 91 mb 31/ 82

industrial property shall not increase the actual, assessed, 1 and taxable values of the property for five full assessment 2 years. 3 Sec. ___. Section 441.21, subsections 9 and 10, Code 2026, 4 are amended to read as follows: 5 9. Not later than November 1, 1979 2026 , and November 6 1 of each subsequent year, the director shall certify to 7 the county auditor of each county the percentages of actual 8 value at which residential property, agricultural property, 9 commercial property, industrial property, property valued by 10 the department of revenue pursuant to chapters 428 and 438 , 11 property valued by the department of revenue pursuant to 12 chapter 434 , and property valued by the department of revenue 13 pursuant to chapter 437 in each assessing jurisdiction in 14 the county each classification of property shall be assessed 15 for taxation , including for assessment years beginning on 16 or after January 1, 2022, the percentages used to apply the 17 assessment limitations under subsection 5 , paragraphs “b” 18 and “c” . The county auditor shall proceed to determine the 19 assessed values of agricultural property, residential property, 20 commercial property, industrial property, property valued by 21 the department of revenue pursuant to chapters 428 and 438 , 22 property valued by the department of revenue pursuant to 23 chapter 434 , and property valued by the department of revenue 24 pursuant to chapter 437 by applying such percentages to the 25 current actual value of such property, as reported to the 26 county auditor by the assessor, and the assessed values so 27 determined shall be the taxable values of such properties upon 28 which the levy shall be made. 29 10. The percentages of actual value computed determined 30 by the department of revenue for agricultural property, 31 residential property, commercial property, industrial property, 32 property valued by the department of revenue pursuant to 33 chapters 428 and 438 , property valued by the department of 34 revenue pursuant to chapter 434 , and property valued by the 35 -32- S 5210.4563.S (2) 91 mb 32/ 82

department of revenue pursuant to chapter 437 , including for 1 assessment years beginning on or after January 1, 2022, the 2 percentages used to apply the assessment limitations under 3 subsection 5 , paragraphs “b” and “c” , and under this section 4 and used to determine assessed values of those classes of 5 property do not constitute a rule as defined in section 17A.2, 6 subsection 11 . 7 Sec. ___. Section 441.21, subsection 13, paragraph a, 8 unnumbered paragraph 1, Code 2026, is amended to read as 9 follows: 10 Beginning with valuations established on or after January 11 1, 2016 2027 , but before January 1, 2022, all of the following 12 shall be valued as a separate class of property known as 13 multiresidential property and, excluding properties referred 14 to in section 427A.1, subsection 9 , shall be assessed at 15 a percentage of its actual value, as determined in this 16 subsection : 17 Sec. ___. Section 441.21, subsection 13, paragraph b, Code 18 2026, is amended by striking the paragraph and inserting in 19 lieu thereof the following: 20 b. (1) For valuations established for the assessment year 21 beginning January 1, 2027, the percentage of actual value as 22 equalized by the department of revenue as provided in section 23 441.49 at which multiresidential property shall be assessed 24 shall be the percentage of actual value determined by the 25 department of revenue at which property assessed as residential 26 property is assessed for the same assessment year under 27 subsection 4 plus three percent, but not to exceed one hundred 28 percent. 29 (2) For valuations established for the assessment 30 year beginning January 1, 2028, and each assessment year 31 thereafter, the percentage of actual value as equalized by 32 the department of revenue as provided in section 441.49 at 33 which multiresidential property shall be assessed shall be the 34 percentage of actual value determined by the department of 35 -33- S 5210.4563.S (2) 91 mb 33/ 82

revenue at which property assessed as residential property is 1 assessed for the same assessment year under subsection 4 plus 2 six percent, but not to exceed one hundred percent. 3 Sec. ___. Section 441.21, subsection 13, paragraph c, Code 4 2026, is amended to read as follows: 5 c. Beginning with valuations established on or after 6 January 1, 2016 2027 , but before January 1, 2022, for parcels 7 for which a portion of the parcel satisfies the requirements 8 for classification as multiresidential property pursuant to 9 paragraph “a” , subparagraph (5) or (6), the assessor shall 10 assign to that portion of the parcel the classification 11 of multiresidential property and to such other portions of 12 the parcel the property classification for which such other 13 portions qualify. 14 Sec. ___. Section 441.21, subsection 13, Code 2026, is 15 amended by adding the following new paragraph: 16 NEW PARAGRAPH . 0e. For purposes of equalization under 17 sections 441.47 through 441.49, multiresidential property shall 18 be considered residential property. 19 Sec. ___. Section 441.21, subsection 14, Code 2026, is 20 amended to read as follows: 21 14. a. Beginning with valuations established on or after 22 January 1, 2022 2027 , all of the following property primarily 23 used or intended for human habitation containing two or fewer 24 dwelling units shall be classified and valued as residential 25 property : . 26 (1) Property primarily used or intended for human 27 habitation containing two or fewer dwelling units. 28 (2) Mobile home parks. 29 (3) Manufactured home communities. 30 (4) Land-leased communities. 31 (5) Assisted living facilities. 32 (6) A parcel primarily used or intended for human habitation 33 containing three or more separate dwelling units. If a 34 portion of such a parcel is used or intended for a purpose 35 -34- S 5210.4563.S (2) 91 mb 34/ 82

that, if the primary use, would be classified as commercial 1 property or industrial property, each such portion, including 2 a proportionate share of the land included in the parcel, if 3 applicable, shall be assigned the appropriate classification 4 pursuant to paragraph “b” . 5 (7) For a parcel that is primarily used or intended for use 6 as commercial property or industrial property, that portion 7 of the parcel that is used or intended for human habitation, 8 regardless of the number of dwelling units contained on the 9 parcel, including a proportionate share of the land included 10 in the parcel, if applicable. The portion of such a parcel 11 used or intended for use as commercial property or industrial 12 property, including a proportionate share of the land included 13 in the parcel, if applicable, shall be assigned the appropriate 14 classification pursuant to paragraph “b” . 15 b. Beginning with valuations established on or after 16 January 1, 2022, for parcels for which a portion of the parcel 17 satisfies the requirements for classification as residential 18 property pursuant to paragraph “a” , subparagraph (6) or (7), 19 the assessor shall assign to that portion of the parcel the 20 classification of residential property and to such other 21 portions of the parcel the property classification for which 22 such other portions qualify. 23 c. Property that is rented or leased to low-income 24 individuals and families as authorized by section 42 of the 25 Internal Revenue Code , and that has not been withdrawn from 26 section 42 assessment procedures under subsection 2 of this 27 section , or a hotel, motel, inn, or other building where rooms 28 or dwelling units are usually rented for less than one month 29 shall not be classified as residential property under this 30 subsection . 31 d. As used in this subsection : 32 (1) “Assisted living facility” means property for providing 33 assisted living as defined in section 231C.2 . “Assisted living 34 facility” also includes a health care facility, as defined in 35 -35- S 5210.4563.S (2) 91 mb 35/ 82

section 135C.1 , an elder group home, as defined in section 1 231B.1 , a child foster care facility under chapter 237 , or 2 property used for a hospice program as defined in section 3 135J.1 . 4 (2) “Dwelling unit” means an apartment, group of rooms, 5 or single room which is occupied as separate living quarters 6 or, if vacant, is intended for occupancy as separate living 7 quarters, in which a tenant can live and sleep separately from 8 any other persons in the building. 9 (3) “Land-leased community” means the same as defined in 10 sections 335.30A and 414.28A . 11 (4) “Manufactured home community” means the same as a 12 land-leased community. 13 (5) “Mobile home park” means the same as defined in section 14 435.1 . 15 Sec. ___. Section 558.46, Code 2026, is amended by adding 16 the following new subsection: 17 NEW SUBSECTION . 4A. For the purposes of this section, 18 “residential property” includes multiresidential property. 19 Sec. ___. EFFECTIVE DATE. The following take effect January 20 1, 2027: 21 1. The section of this division of this Act amending section 22 386.8. 23 2. The section of this division of this Act amending section 24 386.9. 25 3. The section of this division of this Act amending section 26 386.10. 27 4. The section of this division of this Act amending section 28 404.2, subsection 2, paragraph “f”. 29 5. The section of this division of this Act amending section 30 404.3, subsection 4, paragraph “a”. 31 6. The section of this division of this Act amending section 32 404.3A. 33 7. The section of this division of this Act amending section 34 404.3D. 35 -36- S 5210.4563.S (2) 91 mb 36/ 82

8. The section of this division of this Act amending section 1 441.21, subsection 2. 2 9. The section of this division of this Act amending section 3 441.21, subsection 8, paragraph “b”. 4 10. The sections of this division of this Act amending 5 section 441.21, subsection 13. 6 11. The section of this division of this Act amending 7 section 441.21, subsection 14. 8 12. The section of this division of this Act amending 9 section 558.46. 10 Sec. ___. APPLICABILITY. The following apply to assessment 11 years beginning on or after January 1, 2027: 12 1. The section of this division of this Act amending section 13 386.8. 14 2. The section of this division of this Act amending section 15 386.9. 16 3. The section of this division of this Act amending section 17 386.10. 18 4. The section of this division of this Act amending section 19 404.2, subsection 2, paragraph “f”. 20 5. The section of this division of this Act amending section 21 404.3, subsection 4, paragraph “a”. 22 6. The section of this division of this Act amending section 23 404.3A. 24 7. The section of this division of this Act amending section 25 404.3D. 26 8. The section of this division of this Act amending section 27 441.21, subsection 2. 28 9. The section of this division of this Act amending section 29 441.21, subsection 8, paragraph “b”. 30 10. The sections of this division of this Act amending 31 section 441.21, subsection 13. 32 11. The section of this division of this Act amending 33 section 441.21, subsection 14. 34 12. The section of this division of this Act amending 35 -37- S 5210.4563.S (2) 91 mb 37/ 82

section 558.46. 1 DIVISION ___ 2 EMERGENCY MEDICAL SERVICES LEVY 3 Sec. ___. Section 422D.1, subsection 1, paragraph a, 4 subparagraph (2), Code 2026, is amended to read as follows: 5 (2) (a) An For fiscal years beginning before July 1, 2027, 6 an ad valorem property tax not to exceed seventy-five cents per 7 one thousand dollars of assessed value on all taxable property 8 within the county. 9 (b) For fiscal years beginning on or after July 1, 2027, 10 an ad valorem property tax not to exceed one dollar and fifty 11 cents per one thousand dollars of assessed value on all taxable 12 property within the county. However, for counties authorized 13 to impose the ad valorem property tax under this subparagraph 14 for the fiscal year beginning July 1, 2026, the maximum levy 15 rate for such county shall not exceed a rate of seventy-five 16 cents per one thousand dollars of assessed value unless a rate 17 in excess thereof, not to exceed one dollar and fifty cents 18 per one thousand dollars of assessed value, is approved at an 19 election held on or after July 1, 2026. 20 DIVISION ___ 21 SCHOOL DISTRICT UNSPENT BALANCES —— ON-TIME FUNDING AND 22 MODIFIED SUPPLEMENTAL AMOUNTS 23 Sec. ___. Section 257.7, Code 2026, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 3. Unspent balances. For school budget 26 years beginning on or after July 1, 2026, a school district’s 27 actual unspent balance from the preceding year used to 28 calculate the authorized budget under subsection 1 shall 29 not exceed an amount equal to thirty-five percent of the 30 school district’s authorized expenditures for the budget year 31 immediately preceding the base year unless a greater amount 32 is authorized by the school budget review committee based on 33 one or more grounds authorized for the approval of a modified 34 supplemental amount under section 257.31. 35 -38- S 5210.4563.S (2) 91 mb 38/ 82

Sec. ___. Section 257.13, Code 2026, is amended to read as 1 follows: 2 257.13 On-time funding budget adjustment. 3 1. a. For the school budget year beginning July 1, 2001, 4 and succeeding budget years beginning before July 1, 2026 , if a 5 district’s actual enrollment for the budget year, determined 6 under section 257.6 , is greater than its budget enrollment for 7 the budget year, the district shall be eligible to receive an 8 on-time funding budget adjustment. The adjustment shall be in 9 an amount equal to the difference between the actual enrollment 10 for the budget year and the budget enrollment for the budget 11 year, multiplied by the district cost per pupil. 12 2. b. The board of directors of a school district that 13 wishes to receive an on-time funding budget adjustment under 14 this subsection shall adopt a resolution to receive the 15 adjustment and notify the school budget review committee 16 annually, but not earlier than November 1, as determined by the 17 department of education. The school budget review committee 18 shall establish a modified supplemental amount pursuant to 19 subsection 1 paragraph “a” . 20 2. a. For the school budget years beginning on or after 21 July 1, 2026, if a district’s actual enrollment for the budget 22 year, determined under section 257.6, is greater than its 23 budget enrollment for the budget year, the district may request 24 an on-time budget adjustment. The adjustment shall not exceed 25 an amount equal to the difference between the actual enrollment 26 for the budget year and the budget enrollment for the budget 27 year, multiplied by the district cost per pupil. 28 b. To request an on-time budget adjustment under this 29 subsection, the board of directors of a school district shall 30 adopt a resolution to receive the adjustment and notify the 31 school budget review committee on or before a date established 32 by the committee. The school budget review committee may 33 establish a modified supplemental amount pursuant to paragraph 34 “a” . 35 -39- S 5210.4563.S (2) 91 mb 39/ 82

3. If the board of directors of a school district determines 1 that a need exists for additional funds exceeding the on-time 2 funding budget adjustment pursuant to this section , a request 3 for a modified supplemental amount based upon increased 4 enrollment may be submitted to the school budget review 5 committee as provided in section 257.31 . 6 Sec. ___. NEW SECTION . 279.63A Unspent balance —— policy. 7 1. The board of directors of each school district shall 8 establish a policy that defines a targeted range and maximum 9 amount of unspent balance of authorized expenditures, 10 determined by a percent of authorized expenditures under 11 section 257.7 or other methodology specified in the policy. 12 The policy shall also state the date the policy was adopted 13 and the date the policy was most recently reviewed or revised 14 under subsection 2. The targeted range and maximum amount 15 established in the policy shall be made with the intent to 16 equalize educational opportunity, provide a good education 17 for all the children of the school district, provide property 18 tax relief, decrease the percentage of school costs paid from 19 property taxes, and to provide reasonable control of school 20 costs. 21 2. Targeted ranges and maximum amounts defined in the policy 22 under subsection 1 shall be reviewed annually by the board of 23 directors and such review shall be entered in the minutes of 24 the board and approved revisions shall be made to the policy. 25 Sec. ___. EFFECTIVE DATE. This division of this Act, being 26 deemed of immediate importance, takes effect upon enactment. 27 DIVISION ___ 28 GENERAL FUND RESERVES 29 Sec. ___. Section 11.11, Code 2026, is amended to read as 30 follows: 31 11.11 Scope of audits. 32 The written report of the audit of a governmental 33 subdivision shall include the auditor’s opinion as to whether a 34 governmental subdivision’s financial statements are presented 35 -40- S 5210.4563.S (2) 91 mb 40/ 82

fairly in all material respects in conformity with generally 1 accepted accounting principles or with an other another 2 comprehensive basis of accounting. As a part of conducting an 3 audit of a governmental subdivision, an evaluation of internal 4 control and tests for compliance with laws and regulations 5 shall be performed. As part of conducting an audit of a 6 governmental subdivision, an examination of the governmental 7 subdivision’s compliance with the reporting requirements of 8 section 331.403, subsection 3 , or section 384.22, subsection 2 , 9 if applicable, shall be performed. As part of conducting an 10 audit of a governmental subdivision for fiscal years beginning 11 on or after July 1, 2027, an examination of the governmental 12 subdivision’s compliance with section 24.35 shall be performed, 13 including verification of the circumstances resulting in actual 14 reserve funds exceeding the specified limits. 15 Sec. ___. Section 24.34, Code 2026, is amended to read as 16 follows: 17 24.34 Unliquidated obligations. 18 A city, county, or other political subdivision governmental 19 entity, as defined in section 24.35, may establish an 20 encumbrance system for any obligation not liquidated at the 21 close of the fiscal year in which the obligation has been 22 encumbered assigned, committed, restricted, or specified as 23 nonspendable . The encumbered obligations may be retained 24 upon the books of the city, county, or other political 25 subdivision governmental entity, as defined in section 24.35, 26 until liquidated, all in accordance with generally accepted 27 governmental accounting practices principles, as established by 28 the governmental accounting standards board . 29 Sec. ___. NEW SECTION . 24.35 General fund reserves —— 30 limitations. 31 1. For purposes of this section: 32 a. “Budget year” is the fiscal year beginning during the 33 calendar year in which a budget is certified. 34 b. “Current fiscal year” is the fiscal year ending during 35 -41- S 5210.4563.S (2) 91 mb 41/ 82

the calendar year in which a budget for the budget year is 1 certified. 2 c. “General fund” means a governmental entity’s fund 3 designated as such by law or the governmental entity’s fund 4 from which primary general operations of the governmental 5 entity are funded. 6 d. “Governmental entity” means any unit of government 7 or other public body or public corporation, including any 8 intergovernmental entity, that has the power to impose or 9 certify a property tax levy. “Governmental entity” does not 10 include a school district or a governmental entity within the 11 meaning of this paragraph if the governmental entity has a bond 12 rating for the budget year that is the highest classification, 13 as established by at least one of the standard rating services 14 approved by the superintendent of banking by rule adopted under 15 chapter 17A. 16 e. “Unassigned” means funds that are not restricted, 17 committed, assigned, or nonspendable within the meaning of 18 generally accepted accounting principles, as established by the 19 governmental accounting standards board. 20 2. a. For budgets certified for budget years beginning 21 on or after July 1, 2027, proposed unassigned reserve funds 22 identified within a governmental entity’s general fund shall 23 not exceed an amount equal to thirty-five percent of the 24 budgeted expenditures from the governmental entity’s general 25 fund for the current fiscal year prior to budgeted transfers 26 from such general fund. 27 b. If the governmental entity’s budget does not comply with 28 the requirements of paragraph “a” , the department of management 29 shall not certify the governmental entity’s taxes back to the 30 county auditor under section 24.17 and the governmental entity 31 shall remedy the violation and recertify the budget. 32 3. Each governmental entity shall establish an obligated 33 funds account within the governmental entity’s general fund. 34 Restricted, committed, assigned, or nonspendable funds within 35 -42- S 5210.4563.S (2) 91 mb 42/ 82

the meaning of generally accepted accounting principles, as 1 established by the governmental accounting standards board, 2 shall be deposited in and accounted for in the obligated funds 3 account, including but not limited to such funds that are 4 in the governmental entity’s general fund for the purchase, 5 lease-purchase, or major refurbishment of law enforcement, 6 public safety, and public works vehicles and equipment and for 7 vertical infrastructure and horizontal infrastructure projects. 8 4. To ensure uniformity, accuracy, and efficiency in the 9 certification of governmental entity budgets according to the 10 requirements of this section, the department of management 11 shall prescribe the procedures to be used and instruct the 12 appropriate officials of the various governmental entities on 13 implementation of the procedures. 14 Sec. ___. Section 176A.8, subsection 13, Code 2026, is 15 amended by striking the subsection. 16 DIVISION ___ 17 PROPERTY PARCEL INFORMATION 18 Sec. ___. Section 331.510, Code 2026, is amended by adding 19 the following new subsection: 20 NEW SUBSECTION . 5. a. An annual report not later than 21 September 1 to the department of management containing 22 parcel-level property data, including parcel identification 23 information, location, size, valuation, classification, types 24 of structures and improvements, exemptions, credits, and 25 reporting year amounts of property taxes due and payable. 26 b. In addition to the information required under paragraph 27 “a” , the department of management may require additional 28 parcel-level data deemed necessary by the director of the 29 department of management. The department shall prescribe the 30 form and manner of submitting the annual report under this 31 subsection. 32 c. The first annual report under this subsection shall be 33 due not later than September 1, 2027. 34 DIVISION ___ 35 -43- S 5210.4563.S (2) 91 mb 43/ 82

URBAN RENEWAL 1 Sec. ___. Section 15A.1, subsection 1, paragraph b, Code 2 2026, is amended to read as follows: 3 b. For purposes of this chapter , “economic development” 4 means private or joint public and private investment involving 5 the creation of new jobs and income or the retention of 6 existing jobs and income that would otherwise be lost or the 7 provision of workforce housing . 8 Sec. ___. Section 15A.1, subsection 2, Code 2026, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . e. Development policies that advance the 11 development of workforce housing. 12 Sec. ___. Section 331.403, subsection 3, paragraph b, 13 subparagraph (19), Code 2026, is amended by striking the 14 subparagraph. 15 Sec. ___. Section 384.22, subsection 2, paragraph b, 16 subparagraph (19), Code 2026, is amended by striking the 17 subparagraph. 18 Sec. ___. Section 403.17, subsection 10, Code 2026, is 19 amended to read as follows: 20 10. “Economic development area” means an area of a 21 municipality designated by the local governing body as 22 appropriate for commercial and industrial enterprises, public 23 improvements related to housing and residential development, 24 or construction of housing and residential development for low 25 and moderate income families, including single or multifamily 26 housing. If an urban renewal plan for an urban renewal area is 27 based upon a finding that the area is an economic development 28 area and that no part contains slum or blighted conditions, 29 then the division of revenue provided in section 403.19 and 30 stated in the plan shall be limited to twenty years from 31 the calendar year following the calendar year in which the 32 municipality first certifies to the county auditor the amount 33 of any loans, advances, indebtedness, or bonds which qualify 34 for payment from the division of revenue provided in section 35 -44- S 5210.4563.S (2) 91 mb 44/ 82

403.19 . Such designated area shall not include agricultural 1 land, including land which is part of a century farm, unless 2 the owner of the agricultural land or century farm agrees to 3 include the agricultural land or century farm in the urban 4 renewal area. For the purposes of this subsection , “century 5 farm” means a farm in which at least forty acres of such farm 6 have been held in continuous ownership by the same family for 7 one hundred years or more. 8 Sec. ___. Section 403.17, subsection 14, Code 2026, is 9 amended to read as follows: 10 14. “Low or and moderate income families” means those 11 families, including single person households, earning no 12 more than eighty percent of the higher of the median family 13 income of the county or the statewide nonmetropolitan area as 14 determined by the latest United States department of housing 15 and urban development, section 8 income guidelines. 16 Sec. ___. Section 403.17, Code 2026, is amended by adding 17 the following new subsection: 18 NEW SUBSECTION . 14A. “Low and moderate income family 19 housing” means housing for low and moderate income families and 20 includes housing that meets the requirements of section 15.353. 21 Sec. ___. Section 403.19, subsection 2, paragraph a, Code 22 2026, is amended to read as follows: 23 a. That portion of the taxes each year in excess of such 24 amount shall be allocated to and when collected be paid into a 25 special fund of the municipality to pay the principal of and 26 interest on loans, moneys advanced to, or indebtedness, whether 27 funded, refunded, assumed, or otherwise, including bonds 28 issued under the authority of section 403.9, subsection 1 , 29 incurred by the municipality to finance or refinance, in whole 30 or in part, an urban renewal project within the area, and to 31 provide assistance for low and moderate income family housing 32 as provided in section 403.22 . However, except as provided 33 in paragraph “b” , taxes for the regular and voter-approved 34 physical plant and equipment levy of a school district imposed 35 -45- S 5210.4563.S (2) 91 mb 45/ 82

pursuant to section 298.2 ; and taxes for the instructional 1 support program of a school district imposed pursuant to 2 section 257.19 , ; taxes for the payment of bonds and interest of 3 each taxing district , ; foundation property taxes of a school 4 district imposed under section 257.3 levied against property 5 located in an incorporated area and subject to an ordinance 6 providing for a division of revenue adopted on or after January 7 1, 2027; foundation property taxes of a school district imposed 8 under section 257.3 levied against property subject to a 9 division of revenue subject to the sixty percent limitation 10 under paragraph “e” for the applicable fiscal year; and taxes 11 imposed under section 346.27, subsection 22 , related to joint 12 county-city buildings shall be collected against all taxable 13 property within the taxing district without limitation by the 14 provisions of this subsection . 15 Sec. ___. Section 403.19, subsection 2, Code 2026, is 16 amended by adding the following new paragraph: 17 NEW PARAGRAPH . e. For urban renewal areas for which an 18 ordinance providing for a division of revenue in effect on 19 the effective date of this division of this Act that is not 20 limited in duration under section 403.17, subsection 10, Code 21 2026, after twenty years following the effective date of this 22 division of this Act or after twenty years from the calendar 23 year following the calendar year in which the municipality 24 first certifies to the county auditor the amount of any loans, 25 advances, indebtedness, or bonds which qualify for payment 26 from the division of revenue, whichever is later, the amount 27 determined under paragraph “a” that may be paid into the 28 municipality’s special fund shall not exceed sixty percent of 29 the amount otherwise determined under paragraph “a” but for 30 this paragraph and such excess amounts shall be allocated and 31 paid to the respective taxing districts in the same manner 32 as amounts under subsection 1. The municipality may exceed 33 the limitation in this paragraph to the extent necessary for 34 payments of bonds or other indebtedness incurred before the 35 -46- S 5210.4563.S (2) 91 mb 46/ 82

effective date of this division of this Act, but in such event 1 the municipality shall not issue bonds or other indebtedness 2 payable from such division of revenue while exceeding the 3 limitation and the municipality shall not be eligible to 4 utilize school district foundation property taxes imposed under 5 section 257.3. This paragraph shall not apply to divisions of 6 revenue established by community colleges under chapter 260E or 7 rural improvement zones under chapter 357H. 8 Sec. ___. Section 403.19, Code 2026, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 3A. An ordinance providing for a division 11 of revenue under this section that is adopted on or after the 12 effective date of this division of this Act shall be limited 13 to twenty-three years from the calendar year following the 14 calendar year in which the municipality first certifies to the 15 county auditor the amount of any loans, advances, indebtedness, 16 or bonds that qualify for payment from the division of 17 revenue provided for in this section. The ordinance shall 18 terminate and be of no further force and effect following the 19 twenty-three-year period provided in this subsection. This 20 subsection shall not apply to divisions of revenue established 21 by community colleges under chapter 260E or rural improvement 22 zones under chapter 357H. 23 Sec. ___. Section 403.19, Code 2026, is amended by adding 24 the following new subsection: 25 NEW SUBSECTION . 12. For any fiscal year beginning on 26 or after July 1, 2027, following written request filed with 27 the county auditor and the board of directors of the school 28 district, a school district may approve by resolution of the 29 board of directors the payment from the school district’s 30 general fund to the municipality for deposit in the special 31 fund under this section all or a portion of the school district 32 foundation property taxes under section 257.3 levied against 33 property located in an incorporated area and subject to an 34 ordinance providing for a division of revenue adopted on or 35 -47- S 5210.4563.S (2) 91 mb 47/ 82

after January 1, 2027, for one or more applicable fiscal years. 1 If approved, the board of directors shall file such resolution 2 with the county auditor. Payments approved under this 3 subsection are voluntary and a school district is not required 4 to pay over the revenue to the municipality unless approved 5 by resolution. Amounts paid by a school district under this 6 subsection shall continue to be considered foundation property 7 taxes levied under section 257.3 and such payment shall not 8 result in the adjustment of state foundation aid or other 9 amounts under chapter 257. 10 Sec. ___. REPEAL. Section 403.22, Code 2026, is repealed. 11 Sec. ___. IMPLEMENTATION. For a division of revenue in 12 effect on the effective date of this division of this Act that 13 was subject to the duration limitation of section 403.22, 14 subsection 5, prior to the effective date of this division of 15 this Act, such division of revenue shall continue to be subject 16 to the duration limitation otherwise applicable to an urban 17 renewal area established upon the determination that the area 18 is an economic development area, as provided in section 403.17, 19 subsection 10, Code 2026. 20 Sec. ___. EFFECTIVE DATE. This division of this Act, being 21 deemed of immediate importance, takes effect upon enactment. 22 Sec. ___. APPLICABILITY. The following applies to property 23 taxes due and payable in fiscal years beginning on or after 24 July 1, 2028: 25 The portion of the section of this division of this Act 26 excluding taxes under section 257.3 from divisions of revenue 27 by amending section 403.19, subsection 2, paragraph “a”. 28 Sec. ___. APPLICABILITY. The following applies to urban 29 renewal areas in existence on or established on or after the 30 effective date of this division of this Act: 31 The section of this division of this Act repealing section 32 403.22. 33 DIVISION ___ 34 ASSESSMENT PROCEDURES 35 -48- S 5210.4563.S (2) 91 mb 48/ 82

Sec. ___. Section 441.21, subsection 3, Code 2026, is 1 amended to read as follows: 2 3. a. “Actual value” , “taxable value” , or “assessed 3 value” as used in other sections of the Code in relation to 4 assessment of property for taxation shall mean the valuations 5 as determined by this section ; however, other provisions of 6 the Code providing special methods or formulas for assessing 7 or valuing specified property shall remain in effect, but this 8 section shall be applicable to the extent consistent with such 9 provisions. The assessor and department of revenue shall 10 disclose at the written request of the taxpayer all information 11 in any formula or method used to determine the actual value of 12 the taxpayer’s property. In addition, for assessment years 13 beginning on or after January 1, 2027, if the taxpayer’s 14 residential property has increased in actual value by ten 15 percent or more as compared to either of the two immediately 16 preceding assessment years, the assessor shall provide the 17 taxpayer with a statement of the reasons for the increase in 18 actual value, information specifying the portion of actual 19 value increase attributable to a change in classification, 20 revaluation, new construction, improvements, or renovations to 21 the property, and all information in any formula or method used 22 to determine the actual value. 23 b. (1) For assessment years beginning before January 24 1, 2018, the burden of proof shall be upon any complainant 25 attacking such valuation as excessive, inadequate, inequitable, 26 or capricious. However, in protest or appeal proceedings when 27 the complainant offers competent evidence by at least two 28 disinterested witnesses that the market value of the property 29 is less than the market value determined by the assessor, the 30 burden of proof thereafter shall be upon the officials or 31 persons seeking to uphold such valuation to be assessed. 32 (2) (1) For assessment years beginning on or after January 33 1, 2018, the except as provided in subparagraph (3), the burden 34 of proof shall be upon any complainant attacking such valuation 35 -49- S 5210.4563.S (2) 91 mb 49/ 82

as excessive, inadequate, inequitable, or capricious. However, 1 in protest or appeal proceedings when the complainant offers 2 competent evidence that the market value of the property is 3 different than the market value determined by the assessor, 4 the burden of proof thereafter shall be upon the officials or 5 persons seeking to uphold such valuation to be assessed. 6 (3) (2) If the classification of a property has been 7 previously adjudicated by the property assessment appeal board 8 or a court as part of an appeal under this chapter , there 9 is a presumption that the classification of the property has 10 not changed for each of the four subsequent assessment years, 11 unless a subsequent such adjudication of the classification of 12 the property has occurred, and the burden of demonstrating a 13 change in use shall be upon the person asserting a change to 14 the property’s classification. 15 (3) For assessment years beginning on or after January 1, 16 2027, for residential property, if the taxpayer’s property 17 actual value increased by ten percent or more as compared to 18 either of the two immediately preceding assessment years, 19 including an increase as the result of an equalization order, 20 and the property did not change classification or primary use 21 and the increase in actual value is not the result of new 22 construction, improvements, or renovations to the property, the 23 actual value so determined by the assessor is not presumed to 24 be the actual value and in any protest or appeal the assessor 25 shall have the burden of proof that the valuation is not 26 excessive, inadequate, inequitable, or capricious. 27 Sec. ___. Section 441.33, Code 2026, is amended by adding 28 the following new subsection: 29 NEW SUBSECTION . 3. Ex parte communications with board of 30 review members are prohibited in protests before the board. 31 DIVISION ___ 32 VALUATIONS —— ABNORMAL TRANSACTIONS —— REAL ESTATE TRANSFER TAX 33 FORMS 34 Sec. ___. Section 428A.7, Code 2026, is amended to read as 35 -50- S 5210.4563.S (2) 91 mb 50/ 82

follows: 1 428A.7 Forms provided by director of revenue. 2 The director of revenue shall prescribe the form of the 3 declaration of value and shall include an appropriate place 4 for the inclusion of special facts and circumstances relating 5 to the actual sales price in real estate transfers including 6 but not limited to factors that distort market value such as 7 built-to-suit sales, sale-leaseback sales, leased fee sales, 8 and the abnormal transactions identified in section 441.21, 9 subsection 1, paragraph “b” , subparagraph (1) . The director 10 shall provide an adequate number of the declaration of value 11 forms to each county recorder in the state. If the declaration 12 of value form requires or provides for the inclusion of the 13 social security number or federal tax identification number of 14 a seller or buyer, the department shall provide that the social 15 security number or federal tax identification number remains 16 confidential and cannot be obtained by public examination. 17 Sec. ___. Section 441.21, subsection 1, paragraph b, 18 subparagraph (1), Code 2026, is amended to read as follows: 19 (1) The actual value of all property subject to assessment 20 and taxation shall be the fair and reasonable market value of 21 such property except as otherwise provided in this section . 22 “Market value” is defined as the fair and reasonable exchange 23 in the year in which the property is listed and valued between 24 a willing buyer and a willing seller, neither being under any 25 compulsion to buy or sell and each being familiar with all 26 the facts relating to the particular property. Sale prices 27 of the property or comparable property in normal transactions 28 reflecting market value, and the probable availability 29 or unavailability of persons interested in purchasing the 30 property, shall be taken into consideration in arriving at 31 its market value. In arriving at market value, sale prices 32 of property in abnormal transactions not reflecting market 33 value shall not be taken into account, or shall be adjusted to 34 eliminate the effect of factors which distort market value, 35 -51- S 5210.4563.S (2) 91 mb 51/ 82

including but not limited to built-to-suit construction, 1 sale-leaseback transactions, leased fee sales, sales to 2 immediate family of the seller between related parties , 3 foreclosure or other forced sales, contract sales, discounted 4 purchase transactions or purchase of adjoining land or other 5 land to be operated as a unit. 6 Sec. ___. RETROACTIVE APPLICABILITY. This division of this 7 Act applies retroactively to assessment years beginning on or 8 after January 1, 2026. 9 DIVISION ___ 10 AGRICULTURAL EXTENSION LEVY 11 Sec. ___. Section 176A.10, Code 2026, is amended to read as 12 follows: 13 176A.10 County agricultural extension education tax. 14 1. The extension council of each extension district shall, 15 at a meeting held before April 30, estimate the amount of money 16 required to be raised by taxation for financing the county 17 agricultural extension education program authorized in this 18 chapter . The annual tax levy and the amount of money to be 19 raised from the levy for the county agricultural extension 20 education fund shall not exceed the following: amount levied 21 for the immediately preceding fiscal year plus any allowable 22 increase under section 444.25. 23 a. (1) Except as provided in subparagraph (2), for an 24 extension district having a population of less than thirty 25 thousand, an annual levy of twenty and one-fourth cents per 26 thousand dollars of the assessed valuation of the taxable 27 property in the district up to a maximum of seventy thousand 28 dollars for the fiscal year commencing July 1, 1985, and 29 seventy-five thousand dollars for each subsequent fiscal year. 30 (2) For an extension district having a population of less 31 than thirty thousand and as provided in subsection 2 , an annual 32 levy of thirty cents per thousand dollars of the assessed 33 valuation of the taxable property in the district up to a 34 maximum of eighty-seven thousand dollars payable during the 35 -52- S 5210.4563.S (2) 91 mb 52/ 82

fiscal year commencing July 1, 1992, and an increase of six 1 thousand dollars in the amount payable during each subsequent 2 fiscal year. 3 b. (1) Except as provided in subparagraph (2), for an 4 extension district having a population of thirty thousand or 5 more but less than fifty thousand, an annual levy of twenty and 6 one-fourth cents per thousand dollars of the assessed valuation 7 of the taxable property in the district up to a maximum of 8 eighty-four thousand dollars for the fiscal year commencing 9 July 1, 1985, and ninety thousand dollars for each subsequent 10 fiscal year. 11 (2) For an extension district having a population of thirty 12 thousand or more but less than fifty thousand and as provided 13 in subsection 2 , an annual levy of twenty and one-fourth cents 14 per thousand dollars of the assessed valuation of the taxable 15 property in the district up to a maximum of one hundred four 16 thousand dollars payable during the fiscal year commencing 17 July 1, 1992, and an increase of seven thousand dollars in the 18 amount payable during each subsequent fiscal year. 19 c. (1) Except as provided in subparagraph (2), for an 20 extension district having a population of fifty thousand 21 or more but less than ninety-five thousand, an annual levy 22 of thirteen and one-half cents per thousand dollars of the 23 assessed valuation of the taxable property in the district 24 up to a maximum of one hundred five thousand dollars for the 25 fiscal year commencing July 1, 1985, and one hundred twelve 26 thousand five hundred dollars for each subsequent fiscal year. 27 (2) For an extension district having a population of fifty 28 thousand or more but less than ninety thousand and as provided 29 in subsection 2 , an annual levy of thirteen and one-half cents 30 per thousand dollars of the assessed valuation of the taxable 31 property in the district up to a maximum of one hundred thirty 32 thousand five hundred dollars payable during the fiscal year 33 commencing July 1, 1992, and an increase of nine thousand 34 dollars in the amount payable during each subsequent fiscal 35 -53- S 5210.4563.S (2) 91 mb 53/ 82

year. 1 d. (1) Except as provided in subparagraph (2), for an 2 extension district having a population of ninety-five thousand 3 or more, an annual levy of thirteen and one-half cents per 4 thousand dollars of the assessed valuation of the taxable 5 property in the district up to a maximum of one hundred forty 6 thousand dollars for the fiscal year commencing July 1, 1985, 7 and one hundred fifty thousand dollars for each subsequent 8 fiscal year. 9 (2) For an extension district having a population of 10 ninety thousand or more but less than two hundred thousand and 11 as provided in subsection 2 , an annual levy of thirteen and 12 one-half cents per thousand dollars of the assessed valuation 13 of the taxable property in the district up to a maximum of one 14 hundred eighty thousand dollars payable during the fiscal year 15 commencing July 1, 1992, and an increase of fifteen thousand 16 dollars in the amount payable during each subsequent fiscal 17 year. 18 e. For an extension district having a population of two 19 hundred thousand or more and as provided in subsection 2 , 20 an annual levy of five cents per thousand dollars of the 21 assessed valuation of the taxable property in the district up 22 to a maximum of two hundred thousand dollars payable during 23 the fiscal year commencing July 1, 1992, and an increase of 24 twenty-five thousand dollars in the amount payable during each 25 subsequent fiscal year. 26 2. An extension council of an extension district may 27 choose to be subject to the levy and revenue limits specified 28 in subsection 1 , paragraph “a” , subparagraph (2), paragraph 29 “b” , subparagraph (2), paragraph “c” , subparagraph (2), and 30 paragraph “d” , subparagraph (2), and subsection 1 , paragraph 31 “e” , for the purpose of the annual levy for the fiscal year 32 commencing July 1, 1991, which levy is payable in the fiscal 33 year beginning July 1, 1992. Before an extension district 34 may be subject to the levy and revenue limits specified in 35 -54- S 5210.4563.S (2) 91 mb 54/ 82

subsection 1 , paragraph “a” , subparagraph (2), paragraph 1 “b” , subparagraph (2), paragraph “c” , subparagraph (2), and 2 paragraph “d” , subparagraph (2), and subsection 1 , paragraph 3 “e” , for fiscal years beginning on or after July 1, 1992, which 4 levy is payable in fiscal years beginning on or after July 1, 5 1993, the question of whether the district shall be subject to 6 the levy and revenue limits as specified in such paragraphs 7 must be submitted to the registered voters of the district. 8 The question shall be submitted at the time of a general 9 election. If the question is approved by a majority of those 10 voting on the question the levy and revenue limits specified 11 in subsection 1 , paragraph “a” , subparagraph (2), paragraph 12 “b” , subparagraph (2), paragraph “c” , subparagraph (2), and 13 paragraph “d” , subparagraph (2), and subsection 1 , paragraph 14 “e” , shall thereafter apply to the extension district. The 15 question need only be approved at one general election. If 16 a majority of those voting on the question vote against the 17 question, the district may continue to submit the question at 18 subsequent general elections until approved. 19 3. 2. The extension council in each extension district 20 shall comply with chapter 24 . 21 Sec. ___. APPLICABILITY. This division of this Act applies 22 to property taxes due and payable in fiscal years beginning on 23 or after July 1, 2027. 24 DIVISION ___ 25 CHAPTER 404 —— SCHOOL TAXES 26 Sec. ___. Section 404.3D, Code 2026, is amended to read as 27 follows: 28 404.3D Exemptions for residential property. 29 1. For revitalization areas established under this 30 chapter on or after July 1, 2024, and for first-year exemption 31 applications for property located in a revitalization area in 32 existence on July 1, 2024, filed on or after July 1, 2024, an 33 exemption authorized under this chapter for property that is 34 residential property shall not apply to property tax levies 35 -55- S 5210.4563.S (2) 91 mb 55/ 82

imposed by a school district. 1 2. In addition to the inapplicability of the exemption to 2 school district property tax levies specified under subsection 3 1, for property taxes due and payable in fiscal years beginning 4 on or after July 1, 2027, if such a property receiving an 5 exemption is located in both a revitalization area and an 6 urban renewal area, the school district property taxes on the 7 property shall not be subject to the division of revenue under 8 section 403.19 and when collected shall be paid to the school 9 district. 10 Sec. ___. EFFECTIVE DATE. This division of this Act, being 11 deemed of immediate importance, takes effect upon enactment. 12 DIVISION ___ 13 UTILITY REPLACEMENT TAX TASK FORCE 14 Sec. ___. Section 437A.15, subsection 7, paragraph b, Code 15 2026, is amended to read as follows: 16 b. The task force shall study the accuracy of the taxes 17 imposed under this chapter and chapter 437B, ways to modernize 18 the administration of such taxes, methods of simplifying 19 administration of the replacement taxes, elimination of 20 property taxes imposed under this chapter or chapter 437B, 21 simplification of thresholds for replacement tax rate 22 adjustments while retaining tax stability, the effects of 23 the replacement such taxes under this chapter and chapter 24 437B on local taxing authorities, local taxing districts, 25 consumers, and taxpayers through January 1, 2024 December 31, 26 2026, including ways to maintain continuity for local taxing 27 districts and consumers and ways to provide a competitive 28 and equitable tax environment for taxpayers . If the task 29 force recommends modifications to the replacement tax that 30 will further the purposes of tax neutrality for local taxing 31 authorities, local taxing districts, taxpayers, and consumers, 32 consistent with the stated purposes of this chapter taxes , the 33 department of management shall transmit those recommendations 34 to the general assembly. 35 -56- S 5210.4563.S (2) 91 mb 56/ 82

Sec. ___. EFFECTIVE DATE. This division of this Act, being 1 deemed of immediate importance, takes effect upon enactment. 2 DIVISION ___ 3 PAYMENTS IN LIEU OF PROPERTY TAXES —— TASK FORCE 4 Sec. ___. PAYMENTS IN LIEU OF PROPERTY TAXES TASK FORCE —— 5 REPORT. 6 1. By January 10, 2027, the department of revenue shall 7 prepare and submit a report approved by the task force created 8 under subsection 2, including recommended legislative actions, 9 to the general assembly regarding the establishment of a 10 program under which counties may implement a program for the 11 collection of payments in lieu of property taxes from owners of 12 property that is exempt, in whole or in part, from ad valorem 13 property taxes, but excluding government-owned property. 14 2. The department shall convene a task force consisting of 15 at least all of the following persons: 16 a. The director of revenue, or the director’s designee. 17 b. The director of the department of management, or the 18 director’s designee. 19 c. All members of the Polk county board of supervisors. 20 d. One mayor from a city located, in whole or in part, 21 within Polk county, selected by the director of revenue. 22 e. Three representatives from tax-exempt entities located 23 in Polk county of varying sizes, selected by the director of 24 revenue. 25 f. One private property owner, selected by the director of 26 revenue. 27 g. Four ex officio, nonvoting legislative members 28 consisting of the following: 29 (1) Two state senators, one appointed by the president of 30 the senate after consultation with the majority leader of the 31 senate and one appointed by the minority leader of the senate 32 from their respective parties. 33 (2) Two state representatives, one appointed by the speaker 34 and one appointed by the minority leader of the house of 35 -57- S 5210.4563.S (2) 91 mb 57/ 82 #1.

representatives from their respective parties. 1 3. Task force meetings shall be open to the public. 2 4. The task force shall compile and analyze at least all of 3 the following prior to preparation of the department’s report 4 under subsection 1: 5 a. An inventory of tax-exempt property. 6 b. Interest and feasibility of county participation in such 7 a program. 8 c. Feasible program structures. 9 d. Possible methods for calculation of program payment 10 amounts, not to exceed the proportionate amount of a county’s 11 budget for law enforcement, fire protection, and public works 12 services. 13 e. Implementation timelines and procedures. 14 DIVISION __ 15 HOMESTEAD CREDITS AND EXEMPTIONS 16 Sec. ___. Section 10A.518, subsection 2, paragraph b, Code 17 2026, is amended to read as follows: 18 b. The rules shall require the installation of smoke 19 detectors in existing single-family rental units and 20 multiple-unit residential buildings. Existing single-family 21 dwelling units shall be equipped with approved smoke detectors. 22 A person who files for a homestead credit or exemption 23 pursuant to chapter 425 , subchapter I, shall certify that the 24 single-family dwelling unit for which the credit or exemption 25 is filed has a smoke detector installed in compliance with this 26 section , or that one will be installed within thirty days of 27 the date the filing for the credit or exemption is made. The 28 director shall adopt rules and establish appropriate procedures 29 to administer this subsection . 30 Sec. ___. Section 10A.518, subsection 3, paragraph b, Code 31 2026, is amended to read as follows: 32 b. The rules shall require the installation of carbon 33 monoxide alarms in existing single-family rental units and 34 multiple-unit residential buildings that have a fuel-fired 35 -58- S 5210.4563.S (2) 91 mb 58/ 82

heater or appliance, a fireplace, or an attached garage. 1 Existing single-family dwellings that have a fuel-fired heater 2 or appliance, a fireplace, or an attached garage shall be 3 equipped with approved carbon monoxide alarms. For purposes 4 of this paragraph, “approved carbon monoxide alarm” means a 5 carbon monoxide alarm that meets the standards established by 6 the underwriters’ laboratories or is approved by the director 7 as established by rule under subsection 5 . A person who files 8 for a homestead credit or exemption pursuant to chapter 425 , 9 subchapter I, shall certify that the single-family dwelling 10 for which the credit or exemption is filed and that has a 11 fuel-fired heater or appliance, a fireplace, or an attached 12 garage, has carbon monoxide alarms installed in compliance with 13 this section , or that such alarms will be installed within 14 thirty days of the date the filing for the credit or exemption 15 is made. The director shall adopt rules and establish 16 appropriate procedures to administer this subsection . 17 Sec. ___. Section 25B.7, subsection 2, paragraph a, Code 18 2026, is amended to read as follows: 19 a. Homestead tax credit pursuant to section 425.1 , and 20 sections 425.2 through 425.13 , and section 425.15 . 21 Sec. ___. Section 103.22, subsection 7, Code 2026, is 22 amended to read as follows: 23 7. Prohibit an owner of property from performing work on the 24 owner’s principal residence, if such residence is an existing 25 dwelling rather than new construction and is not an apartment 26 that is attached to any other apartment or building, as those 27 terms are defined in section 499B.2 , and is not larger than a 28 single-family dwelling, or require such owner to be licensed 29 under this chapter . In order to qualify for inapplicability 30 pursuant to this subsection , a residence shall qualify for the 31 homestead tax credit or exemption . 32 Sec. ___. Section 105.11, subsection 3, Code 2026, is 33 amended to read as follows: 34 3. Prohibit an owner of property from performing work on the 35 -59- S 5210.4563.S (2) 91 mb 59/ 82

owner’s principal residence, if such residence is an existing 1 dwelling rather than new construction and is not larger than a 2 single-family dwelling, or farm property, excluding commercial 3 or industrial installations or installations in public use 4 buildings or facilities, or require such owner to be licensed 5 under this chapter . In order to qualify for inapplicability 6 pursuant to this subsection , a residence shall qualify for the 7 homestead tax credit or exemption . 8 Sec. ___. Section 216.12, subsection 1, paragraph e, Code 9 2026, is amended to read as follows: 10 e. The rental or leasing of a housing accommodation in a 11 building which contains housing accommodations for not more 12 than four families living independently of each other, if the 13 owner resides in one of the housing accommodations for which 14 the owner qualifies for the homestead tax credit or exemption 15 under section 425.1 chapter 425, subchapter I . 16 Sec. ___. Section 321.1, subsection 6C, Code 2026, is 17 amended to read as follows: 18 6C. “Bona fide residence” or “bona fide address” means the 19 current street or highway address of an individual’s residence. 20 The bona fide residence of a person with more than one dwelling 21 is the dwelling for which the person claims a homestead 22 tax credit or exemption under chapter 425 , subchapter I , if 23 applicable. The bona fide residence of a homeless person is a 24 primary nighttime residence meeting one of the criteria listed 25 in section 48A.2, subsection 3 . 26 Sec. ___. Section 331.401, subsection 1, paragraphs e and f, 27 Code 2026, are amended to read as follows: 28 e. Adopt resolutions authorizing the county assessor to 29 provide forms for homestead tax exemption and credit claimants 30 as provided in section 425.2 chapter 425, subchapter I, and 31 military service tax exemptions as provided in section 426A.14 . 32 f. Examine and allow or disallow claims for homestead 33 tax exemption and credit in accordance with section 425.3 34 chapter 425, subchapter I, and claims for military service 35 -60- S 5210.4563.S (2) 91 mb 60/ 82

tax exemption in accordance with chapter 426A . The board, 1 by a single resolution, may allow or disallow the exemptions 2 recommended by the assessor. 3 Sec. ___. Section 331.512, subsection 3, Code 2026, is 4 amended to read as follows: 5 3. Carry out duties relating to the homestead tax exemption 6 and credit as provided in chapter 425, subchapter I, and 7 agricultural land tax credit as provided in chapters 425 and 8 chapter 426 . 9 Sec. ___. Section 331.559, subsection 11, Code 2026, is 10 amended to read as follows: 11 11. Carry out duties relating to the administration of 12 the homestead tax exemption and credit and other credits as 13 provided in sections 425.4, 425.5, 425.7, 425.9, 425.10, and 14 425.25 chapter 425 . 15 Sec. ___. Section 404.3, subsection 1, Code 2026, is amended 16 to read as follows: 17 1. All qualified real estate assessed as residential 18 property is eligible to receive an exemption from taxation 19 based on the actual value added by the improvements. The 20 exemption is for a period of ten years. The amount of the 21 exemption is equal to a percent of the actual value added by 22 the improvements, determined as follows: One hundred fifteen 23 percent of the value added by the improvements. However, the 24 amount of the actual value added by the improvements which 25 shall be used to compute the exemption shall not exceed twenty 26 thousand dollars and the granting of the exemption shall not 27 result in the actual value of the qualified real estate being 28 reduced below the actual value on which the homestead credit 29 exemption is computed under section 425.1 425.1A, subsection 30 1A . 31 Sec. ___. Section 425.1, subsection 2, Code 2026, is amended 32 by striking the subsection and inserting in lieu thereof the 33 following: 34 2. a. The homestead credit fund shall be apportioned each 35 -61- S 5210.4563.S (2) 91 mb 61/ 82

year so as to give a credit against the tax on each eligible 1 homestead in the state equal to the amounts specified pursuant 2 to paragraph “b” or “c” , as applicable. 3 b. (1) If the owner of a homestead allowed a credit under 4 this subchapter is any of the following, the homestead credit 5 allowed on the homestead shall be the entire amount of tax 6 levied on the homestead: 7 (a) A veteran of any of the military forces of the United 8 States who acquired the homestead under 38 U.S.C. §21.801, 9 21.802 prior to August 6, 1991, or under 38 U.S.C. §2101, 2102. 10 (b) A veteran as defined in section 35.1 with a permanent 11 service-connected disability rating of one hundred percent, as 12 certified by the United States department of veterans affairs, 13 or a permanent and total disability rating based on individual 14 unemployability that is compensated at the one hundred percent 15 disability rate, as certified by the United States department 16 of veterans affairs. 17 (c) A former member of the national guard of any state 18 who otherwise meets the service requirements of section 35.1, 19 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 20 permanent service-connected disability rating of one hundred 21 percent, as certified by the United States department of 22 veterans affairs, or a permanent and total disability rating 23 based on individual unemployability that is compensated at the 24 one hundred percent disability rate, as certified by the United 25 States department of veterans affairs. 26 (d) An individual who is a surviving spouse or a child and 27 who is receiving dependency and indemnity compensation pursuant 28 to 38 U.S.C. §1301 et seq., as certified by the United States 29 department of veterans affairs. 30 (2) (a) For an owner described in subparagraph (1), 31 subparagraph division (a), (b), or (c), the credit allowed 32 shall be continued to the estate of an owner who is deceased 33 or the surviving spouse and any child, as defined in section 34 234.1, who are the beneficiaries of a deceased owner, so long 35 -62- S 5210.4563.S (2) 91 mb 62/ 82

as the surviving spouse remains unmarried. 1 (b) An individual described in subparagraph (1), 2 subparagraph division (d), is no longer eligible for the credit 3 upon termination of dependency and indemnity compensation under 4 38 U.S.C. §1301 et seq. 5 (3) An owner or a beneficiary of an owner who elects to 6 secure the credit provided in this paragraph is not eligible 7 for the credit provided in paragraph “c” or any other real 8 property tax credit or exemption provided by law for veterans 9 of military service. 10 (4) If an owner acquires a different homestead, the 11 credit allowed under this paragraph may be claimed on the new 12 homestead unless the owner fails to meet the other requirements 13 of this paragraph. 14 (5) (a) Except as provided in subparagraph division (b), 15 the list of the names and addresses of individuals allowed 16 a credit under this paragraph and maintained by the county 17 recorder, county treasurer, county assessor, city assessor, or 18 other government body is confidential information and shall 19 not be disseminated to any person unless otherwise ordered by 20 a court or released by the lawful custodian of the records 21 pursuant to state or federal law. The county recorder, county 22 treasurer, county assessor, city assessor, or other government 23 body responsible for maintaining the names and addresses 24 of individuals allowed a credit under this paragraph may 25 display such credit on individual paper records and individual 26 electronic records, including display on an internet site. 27 (b) Upon request, a county recorder, county assessor, city 28 assessor, or other entity may share information as described in 29 subparagraph division (a) to a county veterans service officer 30 for purposes of providing information on benefits and services 31 available to veterans and their families. 32 (6) (a) For an owner who makes an application to secure 33 the credit provided in this paragraph before July 1, 2026, 34 and for the beneficiary of such an owner, “homestead” shall 35 -63- S 5210.4563.S (2) 91 mb 63/ 82

mean the same as defined in section 425.11 for each succeeding 1 assessment year. 2 (b) For an owner who makes an application to secure the 3 credit provided in this paragraph on or after July 1, 2026, and 4 for the beneficiary of such an owner, “homestead” shall mean the 5 same as provided in section 425.11, except the homestead shall 6 not include appurtenances and shall not exceed one-half acre. 7 (7) For purposes of this paragraph, “permanent and total 8 disability rating based on individual unemployability” means 9 a condition under which a person has either a permanent 10 service-connected disability rating of sixty percent or two or 11 more permanent service-connected disability conditions in which 12 one of the conditions has at least a forty percent rating and 13 the combined rating for all the conditions is at least seventy 14 percent, and the person has an administrative adjustment added 15 to the service-connected disability rating, due to individual 16 unemployability, such that the United States department of 17 veterans affairs rates the veteran permanently and totally 18 disabled for purposes of disability compensation. 19 c. (1) For assessment years beginning prior to January 20 1, 2026, unless eligible under section 425.15, Code 2026, an 21 amount equal to the actual levy on the first four thousand 22 eight hundred fifty dollars of actual value for each homestead. 23 (2) For the assessment year beginning January 1, 2026, 24 and each assessment year thereafter, unless eligible under 25 paragraph “b” , a claim for the homestead credit under this 26 paragraph “c” shall not be allowed. 27 Sec. ___. Section 425.1A, subsection 1, Code 2026, is 28 amended to read as follows: 29 1. The following exemptions from taxation shall be allowed 30 in addition to following application of the homestead credit 31 exemption under subsection 1A for an owner that has attained 32 the age of sixty-five years by January 1 of the assessment 33 year: 34 a. For the assessment year beginning January 1, 2023, the 35 -64- S 5210.4563.S (2) 91 mb 64/ 82

eligible homestead, not to exceed three thousand two hundred 1 fifty dollars in taxable value. 2 b. For the assessment year years beginning on or after 3 January 1, 2024, and each succeeding assessment year, the 4 eligible homestead, not to exceed six thousand five hundred 5 dollars in taxable value. 6 Sec. ___. Section 425.1A, Code 2026, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 1A. a. For the assessment year beginning 9 January 1, 2026, and each assessment year thereafter, an 10 exemption from taxation of ten percent of the taxable value, 11 but not less than an exemption of five thousand five hundred 12 dollars in taxable value and not to exceed an exemption of 13 twenty thousand dollars in taxable value, shall be allowed on 14 each eligible homestead. 15 b. (1) For the assessment year beginning January 1, 2027, 16 and for each subsequent assessment year, the maximum exemption 17 amount under paragraph “a” shall be multiplied by the cumulative 18 adjustment factor for that assessment year. “Cumulative 19 adjustment factor” means the product of the annual adjustment 20 factor for the assessment year beginning January 1, 2026, and 21 all annual adjustment factors for subsequent assessment years. 22 The cumulative adjustment factor applies to the assessment year 23 beginning in the calendar year for which the latest annual 24 adjustment factor has been determined. 25 (2) The annual adjustment factor for the assessment year 26 beginning January 1, 2026, is one hundred percent. For each 27 subsequent assessment year, the annual adjustment factor equals 28 the annual inflation factor for the calendar year, in which 29 the assessment year begins, as computed in section 422.4 for 30 purposes of the individual income tax. 31 (3) The cumulative adjustment factor shall be determined 32 annually by the department of revenue. 33 Sec. ___. Section 425.1A, subsection 2, Code 2026, is 34 amended to read as follows: 35 -65- S 5210.4563.S (2) 91 mb 65/ 82

2. Section 25B.7, subsection 1 , shall not apply to the 1 property tax exemption exemptions provided in this section . 2 Sec. ___. Section 425.2, subsections 1 and 2, Code 2026, are 3 amended to read as follows: 4 1. A person who wishes to qualify for the homestead credit 5 or exemptions allowed under this subchapter shall obtain the 6 appropriate forms for filing for the credit from the assessor. 7 The forms shall include the ability to claim the credit under 8 section 425.1 and the exemptions under section 425.1A. 9 However, a separate form shall be required for claiming a 10 credit under section 425.1, subsection 2, paragraph “b” . The 11 person claiming the credit or exemption shall file a verified 12 statement and designation of homestead with the assessor for 13 the year for which the person is first claiming the credit 14 or exemption . The claim shall be filed not later than July 15 1 of the year for which the person is claiming the credit or 16 exemption . A claim filed after July 1 of the year for which the 17 person is claiming the credit or exemption shall be considered 18 as a claim filed for the following year. 19 2. Upon the filing and allowance of the claim, the claim 20 shall be allowed on that homestead for successive years without 21 further filing as long as the property is legally or equitably 22 owned and used as a homestead by that person or that person’s 23 spouse on July 1 of each of those successive years, and the 24 owner of the property being claimed as a homestead declares 25 residency in Iowa for purposes of income taxation, and the 26 property is occupied by that person or that person’s spouse 27 for at least six months in each of those calendar years in 28 which the fiscal year begins. When the property is sold or 29 transferred, the buyer or transferee who wishes to qualify 30 shall refile for the credit or exemption . However, when the 31 property is transferred as part of a distribution made pursuant 32 to chapter 598 , the transferee who is the spouse retaining 33 ownership of the property is not required to refile for the 34 credit or exemption . Property divided pursuant to chapter 598 35 -66- S 5210.4563.S (2) 91 mb 66/ 82

shall not be modified following the division of the property. 1 An owner who ceases to use a property for a homestead or 2 intends not to use it as a homestead for at least six months in 3 a calendar year shall provide written notice to the assessor 4 by July 1 following the date on which the use is changed. A 5 person who sells or transfers a homestead or the personal 6 representative of a deceased person who had a homestead at the 7 time of death, shall provide written notice to the assessor 8 that the property is no longer the homestead of the former 9 claimant. 10 Sec. ___. Section 425.2, subsection 4, Code 2026, is amended 11 by striking the subsection. 12 Sec. ___. Section 425.2, subsections 5 and 6, Code 2026, are 13 amended to read as follows: 14 5. Any person sixty-five years of age or older or any person 15 who is disabled may request, in writing, from the appropriate 16 assessor forms for filing for homestead tax credit . Any 17 person sixty-five years of age or older or who is disabled 18 may complete the form, which shall include a statement of 19 homestead, and mail or return it to the appropriate assessor. 20 The signature of the claimant on the statement shall be 21 considered the claimant’s acknowledgment that all statements 22 and facts entered on the form are correct to the best of the 23 claimant’s knowledge. 24 6. Upon adoption of a resolution by the county board 25 of supervisors, any person may request, in writing, from 26 the appropriate assessor forms for the filing for homestead 27 tax credit . The person may complete the form, which shall 28 include a statement of homestead, and mail or return it to 29 the appropriate assessor. The signature of the claimant on 30 the statement of homestead shall be considered the claimant’s 31 acknowledgment that all statements and facts entered on the 32 form are correct to the best of the claimant’s knowledge. 33 Sec. ___. Section 425.8, subsection 1, Code 2026, is amended 34 to read as follows: 35 -67- S 5210.4563.S (2) 91 mb 67/ 82

1. The director of revenue shall prescribe the form 1 for the making of a verified statement and designation of 2 homestead, the form for the supporting affidavits required 3 herein, and such other forms as may be necessary for the proper 4 administration of this subchapter . Whenever necessary, the 5 department of revenue shall forward to the county auditors of 6 the several counties in the state the prescribed sample forms, 7 and the county auditors shall furnish blank forms prepared in 8 accordance therewith with the assessment rolls, books, and 9 supplies delivered to the assessors. The department of revenue 10 shall prescribe and the county auditors shall provide on the 11 forms for claiming the homestead credit a statement to the 12 effect that the owner realizes that the owner must give written 13 notice to the assessor when the owner changes the use of the 14 property. 15 Sec. ___. Section 425.11, subsection 1, paragraph d, 16 subparagraph (1), unnumbered paragraph 1, Code 2026, is amended 17 to read as follows: 18 The homestead includes the dwelling house which the owner, 19 in good faith, is occupying as a home on July 1 of the year for 20 which the credit or exemption is claimed and occupies as a home 21 for at least six months during the calendar year in which the 22 fiscal year begins, except as otherwise provided. 23 Sec. ___. Section 425.11, subsection 1, paragraph d, 24 subparagraph (3), Code 2026, is amended to read as follows: 25 (3) It must not embrace more than one dwelling house, but 26 where a homestead has more than one dwelling house situated 27 thereon, the exemption and or credit provided for in this 28 subchapter shall apply to the home and buildings used by the 29 owner, but shall not apply to any other dwelling house and 30 buildings appurtenant. 31 Sec. ___. Section 425.11, subsection 1, paragraph e, 32 subparagraph (2), Code 2026, is amended to read as follows: 33 (2) For the purpose of this subchapter , the word “owner” 34 shall be construed to mean a bona fide owner and not one for 35 -68- S 5210.4563.S (2) 91 mb 68/ 82

the purpose only of availing the person of the benefits of this 1 subchapter . In order to qualify for the homestead tax credit 2 and or exemption, evidence of ownership shall be on file in the 3 office of the clerk of the district court or recorded in the 4 office of the county recorder at the time the owner files with 5 the assessor a verified statement of the homestead claimed by 6 the owner as provided in section 425.2 . 7 Sec. ___. NEW SECTION . 425.50 Homestead credit replacement 8 funding —— replacement claims. 9 1. a. For the fiscal year beginning July 1, 2027, and 10 each fiscal year thereafter beginning before July 1, 2029, 11 there is appropriated from the general fund of the state to the 12 department of revenue an amount necessary for the payment of 13 all homestead credit replacement claims under this section for 14 the fiscal year. 15 b. Moneys appropriated by the general assembly to the 16 department of revenue under this subsection are not subject 17 to a uniform reduction in appropriations in accordance with 18 section 8.31. 19 2. For each fiscal year beginning on or after July 1, 2027, 20 but before July 1, 2029, each county treasurer shall be paid 21 by the department of revenue an amount equal to the sum of the 22 homestead credit replacement claims for all taxing authorities 23 located in the county, as calculated in subsection 3. The 24 county treasurer shall pay to each taxing authority the taxing 25 authority’s homestead credit replacement claim as calculated in 26 subsection 3. As used in this section, “taxing authority” means 27 a city, county, school district, or other governmental entity 28 or political subdivision in this state authorized to certify a 29 levy on property located within such authority. 30 3. a. Subject to paragraph “b” , for fiscal years beginning 31 on or after July 1, 2027, but before July 1, 2029, the amount of 32 each taxing authority’s replacement claim is as follows: 33 (1) For the fiscal year beginning July 1, 2027, two-thirds 34 of the amount received by the taxing authority from payments 35 -69- S 5210.4563.S (2) 91 mb 69/ 82

made from the homestead credit fund under section 425.1 for 1 the fiscal year beginning July 1, 2026, excluding amounts 2 attributable to the payment of homestead credits under section 3 425.15, Code 2026. 4 (2) For the fiscal year beginning July 1, 2028, one-third 5 of the amount received by the taxing authority from payments 6 made from the homestead credit fund under section 425.1 for 7 the fiscal year beginning July 1, 2026, excluding amounts 8 attributable to the payment of homestead credits under section 9 425.15, Code 2026. 10 b. For a taxing authority that is a school district, the 11 amount received by the school district from payments made from 12 the homestead credit fund under section 425.1 for the fiscal 13 year beginning July 1, 2026, used to calculate the school 14 district’s replacement claim shall be reduced by that portion 15 of such amount attributable to homestead credits against 16 property taxes levied by the school district under section 17 257.3 for the fiscal year beginning July 1, 2026. 18 4. a. For fiscal years beginning on or after July 1, 2027, 19 but before July 1, 2029, each taxing authority’s replacement 20 claim calculated under subsection 3 shall be paid to the 21 appropriate county treasurer, as provided in subsection 2, in 22 equal installments in September and March of each year. 23 b. After payment by the county treasurer to the taxing 24 authority, the taxing authority’s replacement claim shall be 25 apportioned and credited by the governing body of the taxing 26 authority among the taxing authority’s tax levies in the same 27 proportion that each property tax levy bears to the total of 28 all property tax levies imposed by the taxing authority for the 29 fiscal year for which the payment is received, but excluding 30 a school district’s property tax levy under section 257.3, as 31 applicable. The amounts received under this section shall 32 be considered property taxes in the same manner as though 33 the amount had been paid as credits under the provisions of 34 section 425.1 and shall be used for the purposes of the taxing 35 -70- S 5210.4563.S (2) 91 mb 70/ 82

authority’s applicable property tax levies. 1 5. This section is repealed July 1, 2030. 2 Sec. ___. Section 483A.24, subsection 20, Code 2026, is 3 amended to read as follows: 4 20. Upon payment of a fee established by rules adopted 5 pursuant to section 483A.1 for a lifetime trout fishing 6 license, the department shall issue a lifetime trout fishing 7 license to a person who is at least sixty-five years of age or 8 to a person who qualifies for the disabled veteran homestead 9 credit under section 425.15 425.1, subsection 2, paragraph “b” . 10 The department shall prepare an application to be used by a 11 person requesting a lifetime trout fishing license under this 12 subsection . 13 Sec. ___. REPEAL. Section 425.15, Code 2026, is repealed. 14 Sec. ___. CODE EDITOR DIRECTIVE. The Code editor is 15 directed to create a new subchapter III in chapter 425, 16 entitled “Homestead Credit Replacement Funding” and include 17 section 425.50. 18 Sec. ___. IMPLEMENTATION. Homestead owners who have filed 19 for or that are receiving homestead credits or exemptions under 20 chapter 425, subchapter I, before the effective date of this 21 division of this Act shall continue to receive such credits and 22 exemptions for which the owner is eligible for assessment years 23 beginning on or after January 1, 2026, without refiling, and, 24 if the owner is eligible, shall receive the exemption under 25 section 425.1A, subsection 1A, as enacted in this division of 26 this Act, without filing for such exemption. 27 Sec. ___. RETROACTIVE APPLICABILITY. This division of this 28 Act applies retroactively to assessment years beginning on or 29 after January 1, 2026. 30 DIVISION ___ 31 LOCAL GOVERNMENT BUDGET STATEMENTS 32 Sec. ___. Section 24.2A, subsection 1, paragraph c, Code 33 2026, is amended by striking the paragraph. 34 Sec. ___. Section 24.2A, subsection 2, paragraph a, Code 35 -71- S 5210.4563.S (2) 91 mb 71/ 82

2026, is amended to read as follows: 1 a. On or before 4:00 p.m. on March 5 of each year, each 2 political subdivision shall file with the department of 3 management a report containing all necessary information 4 for the department of management to compile and calculate 5 amounts required to be included in the statements mailed under 6 paragraph “b” or provided under paragraph “c” . If a county 7 or city fails to file all necessary information with the 8 department of management by 4:00 p.m. on March 5, taxes levied 9 by the county or city shall be limited to the prior year’s 10 budget amount. 11 Sec. ___. Section 24.2A, subsection 2, paragraph b, Code 12 2026, is amended by striking the paragraph and inserting in 13 lieu thereof the following: 14 b. Not later than March 15, the county auditor, using 15 information compiled and calculated by the department of 16 management under paragraph “a” , shall send to each property 17 owner or taxpayer within the county by regular mail or post 18 under paragraph “c” a statement, identified as not being a 19 property tax bill and indicating the approximate date when 20 a property tax bill will be delivered, but containing a 21 minimum of all of the following, including the information 22 in subparagraphs (3) and (4) for each of the political 23 subdivisions comprising the owner’s or taxpayer’s taxing 24 district: 25 (1) The address, property description, parcel 26 identification number, actual value, and taxable value of the 27 owner’s or taxpayer’s property. 28 (2) A comparison of the combined amount of property taxes 29 due on the owner’s or taxpayer’s property for the city, if 30 applicable, county, and school district for the current fiscal 31 year and the combined proposed amount of property taxes due on 32 the owner’s or taxpayer’s property for the city, if applicable, 33 county, and school district for the budget year, including the 34 percentage in change in such amounts. 35 -72- S 5210.4563.S (2) 91 mb 72/ 82

(3) The date, time, and location of the political 1 subdivision’s public hearing under subsection 4, including 2 a statement of the owner or taxpayer’s ability to provide 3 feedback at the public hearing and protest property 4 assessments. 5 (4) Information on how to access on the political 6 subdivision’s internet site the political subdivision’s 7 statements under this section and other budget documents for 8 prior fiscal years. 9 (5) A link to the department of management’s internet site 10 where the property owner or taxpayer may view an example of the 11 statement and a brief explanation of the information included 12 on the statement. 13 Sec. ___. Section 24.2A, subsection 2, Code 2026, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . c. For budgets for fiscal years beginning 16 on or after July 1, 2027, statements under paragraph “b” , in 17 lieu of regular mail, may be provided by posting the statement 18 not later than March 15 as a link on the county’s internet site 19 for public viewing. Additionally, if the political subdivision 20 maintains a social media account on one or more social media 21 applications, the statement or an electronic link to the 22 statement shall be posted on each such account on a date no 23 later than March 15. 24 Sec. ___. Section 24.2A, subsection 3, Code 2026, is amended 25 to read as follows: 26 3. The department of management shall prescribe the form 27 for the report required under subsection 2 , paragraph “a” ; 28 following consultation with the Iowa league of cities and the 29 Iowa state association of counties , the statements required to 30 be mailed under subsection 2 , paragraph “b” , or provided under 31 subsection 2, paragraph “c” ; and the public hearing notice 32 required under subsection 4 , paragraph “b” . The statements 33 required under subsection 2, paragraph “b” , shall be clear, 34 concise, written in plain language, and may be presented using 35 -73- S 5210.4563.S (2) 91 mb 73/ 82

tables, written narrative, and graphic representations and 1 shall contain the internet site, if applicable, and a telephone 2 number for each political subdivision that owners and taxpayers 3 may call if they have questions related to the statement. 4 Sec. ___. Section 24.2A, subsection 4, paragraph b, 5 subparagraph (4), subparagraph division (a), Code 2026, is 6 amended to read as follows: 7 (a) Notice of the public hearing was provided to each 8 property owner and each taxpayer within the political 9 subdivision in statements required under subsection 2 , 10 paragraph “b” . 11 Sec. ___. Section 24.3, unnumbered paragraph 1, Code 2026, 12 is amended to read as follows: 13 A municipality shall not certify or levy in any fiscal year 14 any tax on property subject to taxation unless and until the 15 following estimates have been made, filed, and considered, 16 and for school districts, the individual statements have been 17 mailed or posted, as applicable, and public hearings held, as 18 provided in this chapter : 19 Sec. ___. Section 331.434, subsection 3, Code 2026, is 20 amended to read as follows: 21 3. Following, and not until, the requirements of section 22 24.2A are completed, the board shall set a time and place for 23 a public hearing on the budget before the final certification 24 date and shall publish notice of the hearing not less than 25 ten nor more than twenty days prior to the hearing in the 26 county newspapers selected under chapter 349 . A summary of 27 the proposed budget and a description of the procedure for 28 protesting the county budget under section 331.436 , in the form 29 prescribed by the director of the department of management, 30 shall be included in the notice. Proof of publication of 31 the notice under this subsection 3 shall be filed with and 32 preserved by the county auditor. A levy is not valid unless 33 and until the notice is published and individual statements 34 under section 24.2A are mailed or posted . The department of 35 -74- S 5210.4563.S (2) 91 mb 74/ 82

management shall prescribe the form for the public hearing 1 notice for use by counties. 2 Sec. ___. Section 331.435, subsection 2, Code 2026, is 3 amended to read as follows: 4 2. The board shall prepare and adopt a budget amendment in 5 the same manner as the original budget as provided in section 6 331.434 , but excluding the requirements for mailing individual 7 statements under section 24.2A , and the amendment is subject 8 to protest as provided in section 331.436 , except that the 9 director of the department of management may by rule provide 10 that amendments of certain types or up to certain amounts may 11 be made without public hearing and without being subject to 12 protest. A county budget for the ensuing fiscal year shall be 13 amended by May 31 to allow time for a protest hearing to be 14 held and a decision rendered before June 30. An amendment of 15 a budget after May 31 which is properly appealed but without 16 adequate time for hearing and decision before June 30 is void. 17 Sec. ___. Section 384.17, Code 2026, is amended to read as 18 follows: 19 384.17 Levy by county. 20 At the time required by law, the county board of supervisors 21 shall levy the taxes necessary for each city fund for the 22 following fiscal year. The levy must be as shown in the 23 adopted city budget and as certified by the clerk, subject to 24 any changes made after a protest hearing, and any additional 25 tax rates approved at a city election. A city levy is not valid 26 until proof of publication or posting of notice of a budget 27 hearing under section 384.16, subsection 3 , is filed with the 28 county auditor and individual statements are mailed or posted 29 under section 24.2A . 30 Sec. ___. Section 384.18, subsection 2, Code 2026, is 31 amended to read as follows: 32 2. A budget amendment must be prepared and adopted in the 33 same manner as the original budget, as provided in section 34 384.16 , excluding the requirement for the mailing of individual 35 -75- S 5210.4563.S (2) 91 mb 75/ 82

statements under section 24.2A , and is subject to protest as 1 provided in section 384.19 , except that the committee may by 2 rule provide that amendments of certain types or up to certain 3 amounts may be made without public hearing and without being 4 subject to protest. A city budget shall be amended by May 5 31 of the current fiscal year to allow time for a protest 6 hearing to be held and a decision rendered before June 30. The 7 amendment of a budget after May 31, which is properly appealed 8 but without adequate time for hearing and decision before June 9 30 is void. 10 Sec. ___. IMPLEMENTATION OF DIVISION OF ACT. Section 25B.2, 11 subsection 3, shall not apply to this division of this Act. 12 Sec. ___. APPLICABILITY. This division of this Act applies 13 to political subdivision budgets for fiscal years beginning on 14 or after July 1, 2027. 15 DIVISION ___ 16 HOSPITAL PROPERTY TAX LEVIES 17 Sec. ___. Section 347.7, Code 2026, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 3A. a. For fiscal years beginning on 20 or after July 1, 2027, any property tax levy imposed for a 21 county hospital under this chapter that is limited by law to 22 a specific property tax levy rate per one thousand dollars of 23 assessed value shall not exceed a levy rate per one thousand 24 dollars of assessed value that is equal to one thousand 25 multiplied by the quotient obtained by dividing one hundred 26 four percent of the current fiscal year’s actual property tax 27 dollars certified for such levy by the remainder of the total 28 assessed value used to calculate such taxes for the budget year 29 minus value attributable to new valuation. 30 b. The amount of property tax dollars calculated under this 31 subsection includes those amounts budgeted by the hospital as 32 replacement taxes under chapter 437A or 437B, if applicable. 33 c. For purposes of this subsection, “budget year” , “current 34 fiscal year” , and “new valuation” mean the same as defined in 35 -76- S 5210.4563.S (2) 91 mb 76/ 82

section 331.423. 1 Sec. ___. Section 347A.3, Code 2026, is amended by adding 2 the following new subsection: 3 NEW SUBSECTION . 3. a. For fiscal years beginning on 4 or after July 1, 2027, any property tax levy imposed for a 5 county hospital under this chapter that is limited by law to 6 a specific property tax levy rate per one thousand dollars of 7 assessed value shall not exceed a levy rate per one thousand 8 dollars of assessed value that is equal to one thousand 9 multiplied by the quotient obtained by dividing one hundred 10 four percent of the current fiscal year’s actual property tax 11 dollars certified for such levy by the remainder of the total 12 assessed value used to calculate such taxes for the budget year 13 minus value attributable to new valuation. 14 b. The amount of property tax dollars calculated under this 15 subsection includes those amounts budgeted by the hospital as 16 replacement taxes under chapter 437A or 437B, if applicable. 17 c. For purposes of this subsection, “budget year” , “current 18 fiscal year” , and “new valuation” mean the same as defined in 19 section 331.423. 20 DIVISION ___ 21 TRANSIT TAXES 22 Sec. ___. Section 28M.5, subsection 1, Code 2026, is amended 23 to read as follows: 24 1. a. The commission, with the approval of the board of 25 supervisors of participating counties and the city council of 26 participating cities in the chapter 28E agreement, may , subject 27 to paragraph “b” , levy annually a tax not to exceed ninety-five 28 cents per thousand dollars of the assessed value of all taxable 29 property in a regional transit district to the extent provided 30 in this section . The chapter 28E agreement may authorize 31 the commission to levy the tax at different rates within the 32 participating cities and counties in amounts sufficient to meet 33 the revenue responsibilities of such cities and counties as 34 allocated in the budget adopted by the commission. However, 35 -77- S 5210.4563.S (2) 91 mb 77/ 82

for a city participating in a regional transit district, the 1 total of all the tax levies imposed in the city pursuant to 2 section 384.12, subsection 1 , paragraph “b” , and this section 3 shall not exceed the aggregate of ninety-five cents per 4 thousand dollars of the assessed value of all taxable property 5 in the participating city. 6 b. (1) For each fiscal year beginning on or after July 1, 7 2027, the sum of property tax dollars levied for the regional 8 transit district under this subsection and property tax dollars 9 received by the regional transit district from participating 10 cities and counties shall not exceed an amount equal to one 11 hundred three percent of the sum of property tax dollars levied 12 for the regional transit district under this subsection for 13 the immediately preceding fiscal year and property tax dollars 14 received by the regional transit district from participating 15 cities and counties for the immediately preceding fiscal year. 16 (2) The amount of property tax dollars calculated under this 17 paragraph includes those amounts budgeted by the district as 18 replacement taxes under chapter 437A or 437B, if applicable. 19 Sec. ___. Section 384.12, subsection 1, Code 2026, is 20 amended to read as follows: 21 1. a. A tax for the operation and maintenance of a 22 municipal transit system or for operation and maintenance of a 23 regional transit district, and for the creation of a reserve 24 fund for the system or district, in an amount not to exceed 25 ninety-five cents per thousand dollars of assessed value each 26 year, when the revenues from the transit system or district are 27 insufficient for such purposes. 28 b. (1) A tax for the operation and maintenance of a 29 regional transit district, and for the creation of a reserve 30 fund for the district under chapter 28M, in an amount not 31 to exceed ninety-five cents per thousand dollars of assessed 32 value each year, when the revenues from the district are 33 insufficient for such purposes. In addition to the levy rate 34 limitation, for each fiscal year beginning on or after July 1, 35 -78- S 5210.4563.S (2) 91 mb 78/ 82

2027, the sum of property tax dollars levied for the regional 1 transit district by the city under this paragraph shall not 2 exceed an amount equal to one hundred three percent of the sum 3 of property tax dollars levied by the city for the regional 4 transit district under this paragraph for the immediately 5 preceding fiscal year. 6 (2) The amount of property tax dollars calculated under 7 this paragraph includes those amounts budgeted by the city as 8 replacement taxes under chapter 437A or 437B, if applicable. 9 DIVISION ___ 10 COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS 11 Sec. ___. Section 441.21, subsection 5, paragraph e, Code 12 2026, is amended to read as follows: 13 e. (1) For the fiscal year beginning July 1, 2023, there 14 is appropriated from the general fund of the state to the 15 department of revenue the sum of one hundred twenty-two million 16 three hundred fifty thousand dollars to be used for payments 17 under this paragraph calculated as a result of the assessment 18 limitations imposed under paragraph “b” , subparagraph (2), 19 subparagraph division (a), and paragraph “c” , subparagraph (2), 20 subparagraph division (a). For each fiscal year beginning 21 on or after July 1, 2024, but before July 1, 2027, there 22 is appropriated from the general fund of the state to the 23 department of revenue the sum of one hundred twenty-five 24 million dollars to be used for payments under this paragraph 25 calculated as a result of the assessment limitations imposed 26 under paragraph “b” , subparagraph (2), subparagraph division 27 (a), and paragraph “c” , subparagraph (2), subparagraph division 28 (a). 29 (2) For fiscal years beginning on or after July 1, 2023, but 30 before July 1, 2027, each county treasurer shall be paid by the 31 department of revenue an amount calculated under subparagraph 32 (4) for the applicable fiscal year . If an amount appropriated 33 for the fiscal year is insufficient to make all payments as 34 calculated under subparagraph (4), the director of revenue 35 -79- S 5210.4563.S (2) 91 mb 79/ 82

shall prorate the payments to the county treasurers and shall 1 notify the county auditors of the pro rata percentage on or 2 before September 30. 3 (3) On or before July 1 of each applicable fiscal year, the 4 assessor shall report to the county auditor that portion of the 5 total actual value of all commercial property and industrial 6 property in the county that is subject to the assessment 7 limitations imposed under paragraph “b” , subparagraph (2), 8 subparagraph division (a), and paragraph “c” , subparagraph (2), 9 subparagraph division (a), for the assessment year used to 10 calculate the taxes due and payable in that fiscal year. 11 (4) On or before September 1 of each applicable fiscal year, 12 the county auditor shall prepare a statement, based on the 13 report received in subparagraph (3) and information transmitted 14 to the county auditor under chapter 434 , listing for each 15 taxing district in the county: 16 (a) The product of the portion of the total actual value 17 of all commercial property, industrial property, and property 18 valued by the department under chapter 434 in the county 19 that is subject to the assessment limitations imposed under 20 paragraph “b” , subparagraph (2), subparagraph division (a), and 21 paragraph “c” , subparagraph (2), subparagraph division (a), for 22 the applicable assessment year used to calculate taxes which 23 are due and payable in the applicable fiscal year multiplied 24 by the difference, stated as a percentage, between ninety 25 percent and the assessment limitation percentage applicable 26 to residential property under subsection 4 for the applicable 27 assessment year. 28 (b) The tax levy rate per one thousand dollars of assessed 29 value for each taxing district for the applicable fiscal year. 30 (c) The amount of the payment for each county is equal to 31 the amount determined pursuant to subparagraph division (a), 32 multiplied by the tax rate specified in subparagraph division 33 (b), and then divided by one thousand dollars. 34 (5) The county auditor shall certify and forward one copy of 35 -80- S 5210.4563.S (2) 91 mb 80/ 82

the statement described in subparagraph (4) to the department 1 of revenue not later than September 1 of each applicable fiscal 2 year. 3 (6) The amounts determined under this paragraph shall 4 be paid by the department to the county treasurers in equal 5 installments in September and March of each applicable year. 6 The county treasurer shall apportion the payments among 7 the eligible taxing districts in the county and the amounts 8 received by each taxing authority shall be treated the same as 9 property taxes paid. 10 DIVISION ___ 11 IOWA ECONOMIC EMERGENCY FUND —— TAXPAYER RELIEF FUND 12 Sec. ___. GENERAL FUND EXPENDITURE LIMITATION —— FY 13 2027-2028. For the fiscal year beginning July 1, 2027, and 14 ending June 30, 2028, the state general fund expenditure 15 limitation calculated under section 8.54 for the fiscal year 16 shall be reduced by $125,000,000. 17 Sec. ___. DISTRIBUTIONS OF IOWA ECONOMIC 18 EMERGENCY FUND EXCESS —— TAXPAYER RELIEF FUND —— FY 19 2028-2029. Notwithstanding section 8.55, subsection 2, 20 paragraphs “a” and “b”, for the fiscal year beginning July 1, 21 2028, and ending June 30, 2029, moneys in excess of the maximum 22 balance of the Iowa economic emergency fund created in section 23 8.55 shall be distributed as follows: 24 1. The difference between the actual net revenue for the 25 general fund of the state for the fiscal year and the adjusted 26 revenue estimate for the fiscal year shall be transferred to 27 the taxpayer relief fund created in section 8.57E. 28 2. Of the remaining moneys in excess of the maximum balance 29 of the Iowa economic emergency fund, if any, $125,000,000 shall 30 be transferred to the taxpayer relief fund. 31 3. After the transfer pursuant to subsection 2, the 32 remaining moneys in excess of the maximum balance of the Iowa 33 economic emergency fund, if any, shall be transferred to the 34 general fund of the state. 35 -81- S 5210.4563.S (2) 91 mb 81/ 82

DIVISION ___ 1 LOCAL EMERGENCY MANAGEMENT PROPERTY TAXES 2 Sec. ___. Section 29C.17, subsection 2, unnumbered 3 paragraph 1, Code 2026, is amended to read as follows: 4 For purposes consistent with this chapter , the local 5 emergency management agency’s approved budget shall be 6 funded by one or any combination of the following options, as 7 determined by the commission and subject to subsection 7 : 8 Sec. ___. Section 29C.17, Code 2026, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 7. For each fiscal year beginning on or 11 after July 1, 2027, and in addition to any applicable property 12 tax levy rate limitations provided by law, the sum of the 13 property tax dollars levied by all governmental entities for 14 the purpose of funding the services and operation of the 15 emergency management agency and commission shall not exceed 16 an amount equal to one hundred three percent of the sum of 17 property tax dollars levied by all governmental entities for 18 the purpose of funding the services and operation of the 19 emergency management agency and commission for the immediately 20 preceding fiscal year. The amount of property tax dollars 21 determined under this subsection includes those amounts 22 received as replacement taxes under chapter 437A or 437B, if 23 applicable. > 24 ___. Title page, by striking lines 1 through 5 and inserting 25 < An Act relating to state and local government taxes, fees, 26 financial authority, and budgets, by modifying property 27 assessment provisions, divisions of revenue, and funding from 28 the secure an advanced vision for education fund, establishing 29 a program for first-time homebuyers, modifying and making 30 appropriations, and including effective date, applicability, 31 and retroactive applicability provisions. >> 32 2. By renumbering as necessary. 33 -82- S 5210.4563.S (2) 91 mb 82/ 82