Senate File 2472 S-5172 Amend Senate File 2472 as follows: 1 1. Page 1, by striking lines 14 through 30 and inserting: 2 < c. (1) For each fiscal year beginning on or after July 3 1, 2028, three dollars and fifty cents per thousand dollars of 4 assessed value. For the fiscal year beginning July 1, 2027, 5 and the fiscal year beginning July 1, 2028, the greater of: 6 (a) A levy rate per one thousand dollars of assessed value 7 equal to one thousand multiplied by the quotient of one hundred 8 one and three-fourths percent of the current fiscal year’s 9 actual property tax dollars certified for levy under this 10 subsection 1 divided by the remainder of the total assessed 11 value used to calculate such taxes for the budget year minus 12 value attributable to new valuation. 13 (b) A levy rate per one thousand dollars of assessed value 14 that results in an amount of actual property tax dollars 15 certified for levy under this subsection 1 equal to one 16 hundred and one-half percent of the actual property tax dollars 17 certified for levy under this subsection 1 for the current 18 fiscal year. 19 (2) For the fiscal year beginning July 1, 2029, the greater 20 of: 21 (a) A levy rate per one thousand dollars of assessed value 22 equal to one thousand multiplied by the quotient of one hundred 23 two percent of the current fiscal year’s actual property tax 24 dollars certified for levy under this subsection 1 divided by 25 the remainder of the total assessed value used to calculate 26 such taxes for the budget year minus value attributable to new 27 valuation. 28 (b) A levy rate per one thousand dollars of assessed value 29 that results in an amount of actual property tax dollars 30 certified for levy under this subsection 1 equal to one 31 hundred and one-half percent of the actual property tax dollars 32 certified for levy under this subsection 1 for the current 33 fiscal year. > 34 2. Page 1, line 34, by striking < 2028 > and inserting < 2030 > 35 -1- SF 2472.3906 (2) 91 md/jh 1/ 38 #1.
3. Page 2, line 2, by striking < 2028 > and inserting < 2030 > 1 4. By striking page 3, line 24, through page 4, line 5, and 2 inserting: 3 < c. (1) For each fiscal year beginning on or after July 1, 4 2028, three dollars and ninety-five cents per thousand dollars 5 of assessed value. For the fiscal year beginning July 1, 2027, 6 and the fiscal year beginning July 1, 2028, the greater of: 7 (a) A levy rate per one thousand dollars of assessed value 8 equal to one thousand multiplied by the quotient of one hundred 9 one and three-fourths percent of the current fiscal year’s 10 actual property tax dollars certified for levy under this 11 subsection 2 divided by the remainder of the total assessed 12 value used to calculate such taxes for the budget year minus 13 value attributable to new valuation. 14 (b) A levy rate per one thousand dollars of assessed value 15 that results in an amount of actual property tax dollars 16 certified for levy under this subsection 2 equal to one 17 hundred and one-half percent of the actual property tax dollars 18 certified for levy under this subsection 2 for the current 19 fiscal year. 20 (2) For the fiscal year beginning July 1, 2029, the greater 21 of: 22 (a) A levy rate per one thousand dollars of assessed value 23 equal to one thousand multiplied by the quotient of one hundred 24 two percent of the current fiscal year’s actual property tax 25 dollars certified for levy under this subsection 2 divided by 26 the remainder of the total assessed value used to calculate 27 such taxes for the budget year minus value attributable to new 28 valuation. 29 (b) A levy rate per one thousand dollars of assessed value 30 that results in an amount of actual property tax dollars 31 certified for levy under this subsection 2 equal to one 32 hundred and one-half percent of the actual property tax dollars 33 certified for levy under this subsection 2 for the current 34 fiscal year. > 35 -2- SF 2472.3906 (2) 91 md/jh 2/ 38 #3. #4.
5. Page 4, line 9, by striking < 2028 > and inserting < 2030 > 1 6. Page 4, line 12, by striking < 2028 > and inserting < 2030 > 2 7. By striking page 6, line 21, through page 7, line 15, and 3 inserting: 4 < d. (1) (a) For each fiscal year beginning on or after 5 July 1, 2028, a city’s tax levy rate for the general fund, 6 except for levies authorized in section 384.12 , shall not 7 exceed eight dollars and ten cents per thousand dollars of 8 assessed value used to calculate taxes in any fiscal year. For 9 the fiscal year beginning July 1, 2027, and the fiscal year 10 beginning July 1, 2028, a city’s tax levy rate for the general 11 fund, except for levies authorized in section 384.12, shall not 12 exceed the greater of: 13 (i) A levy rate per one thousand dollars of assessed value 14 equal to one thousand multiplied by the quotient of one hundred 15 one and three-fourths percent of the current fiscal year’s 16 actual property tax dollars certified for levy under this 17 subsection divided by the remainder of the total assessed value 18 used to calculate such taxes for the budget year minus value 19 attributable to new valuation. 20 (ii) A levy rate per one thousand dollars of assessed 21 value that results in an amount of actual property tax dollars 22 certified for levy under this subsection equal to one hundred 23 and one-half percent of the actual property tax dollars 24 certified for levy under this subsection for the current fiscal 25 year. 26 (b) Notwithstanding other provisions of this subparagraph, 27 if a city’s actual levy rate for the current fiscal year is 28 zero dollars per one thousand dollars of assessed value, a levy 29 rate per one thousand dollars of assessed value equal to one 30 thousand multiplied by the quotient of one hundred two percent 31 of the city’s certified general fund budget for the current 32 fiscal year divided by the remainder of the total assessed 33 value used to calculate taxes for the budget year minus value 34 attributable to new valuation. 35 -3- SF 2472.3906 (2) 91 md/jh 3/ 38 #5. #6. #7.
(2) (a) For the fiscal year beginning July 1, 2029, a 1 city’s tax levy rate for the general fund, except for levies 2 authorized in section 384.12, shall not exceed the greater of: 3 (i) A levy rate per one thousand dollars of assessed value 4 equal to one thousand multiplied by the quotient of one hundred 5 two percent of the current fiscal year’s actual property tax 6 dollars certified for levy under this subsection divided by 7 the remainder of the total assessed value used to calculate 8 such taxes for the budget year minus value attributable to new 9 valuation. 10 (ii) A levy rate per one thousand dollars of assessed 11 value that results in an amount of actual property tax dollars 12 certified for levy under this subsection equal to one hundred 13 and one-half percent of the actual property tax dollars 14 certified for levy under this subsection for the current fiscal 15 year. 16 (b) Notwithstanding other provisions of this subparagraph, 17 if a city’s actual levy rate for the current fiscal year is 18 zero dollars per one thousand dollars of assessed value, a levy 19 rate per one thousand dollars of assessed value equal to one 20 thousand multiplied by the quotient of one hundred two percent 21 of the city’s certified general fund budget for the current 22 fiscal year divided by the remainder of the total assessed 23 value used to calculate taxes for the budget year minus value 24 attributable to new valuation. > 25 8. Page 7, line 19, by striking < 2028 > and inserting < 2030 > 26 9. Page 7, line 23, by striking < 2028 > and inserting < 2030 > 27 10. By striking page 10, line 23, through page 11, line 28. 28 11. By striking page 23, line 33, through page 24, line 4. 29 12. By striking page 34, line 20, through page 36, line 5, 30 and inserting: 31 < (2) For valuations established for the assessment year 32 beginning January 1, 2026, the percentage of actual value as 33 equalized by the department of revenue as provided in section 34 441.49 at which residential property shall be assessed shall 35 -4- SF 2472.3906 (2) 91 md/jh 4/ 38 #8. #9. #10. #11. #12.
be fifty-five percent. 1 (3) For valuations established for the assessment year 2 beginning January 1, 2027, and each assessment year thereafter, 3 the percentage of actual value as equalized by the department 4 of revenue as provided in section 441.49 at which residential 5 property shall be assessed shall be sixty-five percent. > 6 13. By striking page 38, line 1, through page 40, line 4, 7 and inserting: 8 < b. For valuations established on or after January 1, 2013, 9 commercial Commercial property, excluding properties referred 10 to in section 427A.1, subsection 9, shall be assessed at a 11 portion of its actual value, as determined in this paragraph 12 “b” . 13 (1) For valuations established for the assessment year 14 beginning January 1, 2013, the percentage of actual value 15 as equalized by the department of revenue as provided in 16 section 441.49 at which commercial property shall be assessed 17 shall be ninety-five percent. For valuations established 18 for the assessment year beginning January 1, 2014, and each 19 assessment year thereafter beginning before January 1, 2022, 20 the percentage of actual value as equalized by the department 21 of revenue as provided in section 441.49 at which commercial 22 property shall be assessed shall be ninety percent. 23 (2) (1) For valuations established for the assessment year 24 beginning January 1, 2022, and each assessment year thereafter 25 beginning before January 1, 2026 , the portion of actual value 26 at which each property unit of commercial property shall be 27 assessed shall be the sum of the following: 28 (a) An amount equal to the product of the assessment 29 limitation percentage applicable to residential property under 30 subsection 4 for that assessment year multiplied by the actual 31 value of the property that exceeds zero dollars but does not 32 exceed one hundred fifty thousand dollars. 33 (b) An amount equal to ninety percent of the actual value of 34 the property for that assessment year that exceeds one hundred 35 -5- SF 2472.3906 (2) 91 md/jh 5/ 38 #13.
fifty thousand dollars. 1 (2) For valuations established for the assessment year 2 beginning January 1, 2026, the portion of actual value at which 3 each property unit of commercial property shall be assessed 4 shall be the sum of the following: 5 (a) An amount equal to the product of the assessment 6 limitation percentage applicable to residential property under 7 subsection 4 for that assessment year multiplied by the actual 8 value of the property that exceeds zero dollars but does not 9 exceed one hundred fifty thousand dollars. 10 (b) An amount equal to ninety-three percent of the actual 11 value of the property for that assessment year that exceeds one 12 hundred fifty thousand dollars. 13 (3) For valuations established for the assessment year 14 beginning January 1, 2027, and each assessment year thereafter, 15 the portion of actual value at which each property unit of 16 commercial property shall be assessed shall be the sum of the 17 following: 18 (a) An amount equal to the product of the assessment 19 limitation percentage applicable to residential property under 20 subsection 4 for that assessment year multiplied by the actual 21 value of the property that exceeds zero dollars but does not 22 exceed one hundred fifty thousand dollars. 23 (b) An amount equal to one hundred percent of the actual 24 value of the property for that assessment year that exceeds one 25 hundred fifty thousand dollars. 26 c. For valuations established on or after January 1, 2013, 27 industrial Industrial property, excluding properties referred 28 to in section 427A.1, subsection 9, shall be assessed at a 29 portion of its actual value, as determined in this paragraph 30 “c” . 31 (1) For valuations established for the assessment year 32 beginning January 1, 2013, the percentage of actual value 33 as equalized by the department of revenue as provided in 34 section 441.49 at which industrial property shall be assessed 35 -6- SF 2472.3906 (2) 91 md/jh 6/ 38
shall be ninety-five percent. For valuations established 1 for the assessment year beginning January 1, 2014, and each 2 assessment year thereafter beginning before January 1, 2022, 3 the percentage of actual value as equalized by the department 4 of revenue as provided in section 441.49 at which industrial 5 property shall be assessed shall be ninety percent. 6 (2) (1) For valuations established for the assessment year 7 beginning January 1, 2022, and each assessment year thereafter 8 beginning before January 1, 2026 , the portion of actual value 9 at which each property unit of industrial property shall be 10 assessed shall be the sum of the following: 11 (a) An amount equal to the product of the assessment 12 limitation percentage applicable to residential property under 13 subsection 4 for that assessment year multiplied by the actual 14 value of the property that exceeds zero dollars but does not 15 exceed one hundred fifty thousand dollars. 16 (b) An amount equal to ninety percent of the actual value of 17 the property for that assessment year that exceeds one hundred 18 fifty thousand dollars. 19 (2) For valuations established for the assessment year 20 beginning January 1, 2026, the portion of actual value at which 21 each property unit of industrial property shall be assessed 22 shall be the sum of the following: 23 (a) An amount equal to the product of the assessment 24 limitation percentage applicable to residential property under 25 subsection 4 for that assessment year multiplied by the actual 26 value of the property that exceeds zero dollars but does not 27 exceed one hundred fifty thousand dollars. 28 (b) An amount equal to ninety-three percent of the actual 29 value of the property for that assessment year that exceeds one 30 hundred fifty thousand dollars. 31 (3) For valuations established for the assessment year 32 beginning January 1, 2027, and each assessment year thereafter, 33 the portion of actual value at which each property unit of 34 industrial property shall be assessed shall be the sum of the 35 -7- SF 2472.3906 (2) 91 md/jh 7/ 38
following: 1 (a) An amount equal to the product of the assessment 2 limitation percentage applicable to residential property under 3 subsection 4 for that assessment year multiplied by the actual 4 value of the property that exceeds zero dollars but does not 5 exceed one hundred fifty thousand dollars. 6 (b) An amount equal to one hundred percent of the actual 7 value of the property for that assessment year that exceeds one 8 hundred fifty thousand dollars. 9 d. For valuations established for the assessment year 10 beginning January 1, 2019, and each assessment year thereafter, 11 the percentages or portions of actual value at which property 12 is assessed, as determined under this subsection, shall not be 13 applied to the value of wind energy conversion property valued 14 under section 427B.26 the construction of which is approved by 15 the Iowa utilities commission on or after July 1, 2018. > 16 14. By striking page 44, line 12, through page 45, line 32, 17 and inserting: 18 < b. For valuations established for the assessment 19 year beginning January 1, 2027, and each assessment year 20 thereafter, the percentage of actual value as equalized by the 21 department of revenue as provided in section 441.49 at which 22 multiresidential property shall be assessed shall be eighty 23 percent. > 24 15. Page 48, after line 9 by inserting: 25 < Sec. ___. Section 441.33, Code 2026, is amended by adding 26 the following new subsection: 27 NEW SUBSECTION . 3. Ex parte communications with board of 28 review members are prohibited in protests before the board. > 29 16. Page 53, lines 15 and 16, by striking < and the exemption 30 under subsection 1B, if applicable, > 31 17. Page 53, line 27, by striking < subsections > and 32 inserting < subsection > 33 18. By striking page 53, line 28, through page 55, line 10, 34 and inserting: 35 -8- SF 2472.3906 (2) 91 md/jh 8/ 38 #14. #15. #16. #17. #18.
< NEW SUBSECTION . 1A. a. (1) Except as provided in 1 subparagraph (2), for the assessment year beginning January 1, 2 2026, an exemption from taxation of five percent of taxable 3 value, but not less than four thousand eight hundred fifty 4 dollars in taxable value and not to exceed an exemption of 5 thirty-five thousand dollars in taxable value, shall be allowed 6 on each eligible homestead. 7 (2) (a) For an owner that has attained the age of sixty 8 years but has not yet attained the age of seventy by January 1 9 of the assessment year, the amount of the exemption shall be 10 sixty percent of taxable value, not to exceed an exemption of 11 three hundred fifty thousand dollars in taxable value. 12 (b) For an owner that has attained the age of seventy years 13 but has not yet attained the age of eighty by January 1 of the 14 assessment year, the amount of the exemption shall be seventy 15 percent of taxable value, not to exceed an exemption of three 16 hundred fifty thousand dollars in taxable value. 17 (c) For an owner that has attained the age of eighty years 18 but has not yet attained the age of ninety by January 1 of the 19 assessment year, the amount of the exemption shall be eighty 20 percent of taxable value, not to exceed an exemption of three 21 hundred fifty thousand dollars in taxable value. 22 (d) For an owner that has attained the age of ninety years 23 but has not yet attained the age of one hundred by January 1 24 of the assessment year, the amount of the exemption shall be 25 ninety percent of taxable value, not to exceed an exemption of 26 three hundred fifty thousand dollars in taxable value. 27 (e) For an owner that has attained the age of one hundred 28 years by January 1 of the assessment year, the amount of the 29 exemption shall be one hundred percent of taxable value, not 30 to exceed an exemption of three hundred fifty thousand dollars 31 in taxable value. 32 b. (1) Except as provided in subparagraph (2), for each 33 assessment year beginning on or after January 1, 2027, an 34 exemption from taxation of fifteen percent of taxable value, 35 -9- SF 2472.3906 (2) 91 md/jh 9/ 38
but not less than four thousand eight hundred fifty dollars in 1 taxable value and not to exceed an exemption of one hundred 2 fifty thousand dollars in taxable value, shall be allowed on 3 each eligible homestead. > 4 19. Page 55, after line 35 by inserting: 5 < c. (1) For the assessment year beginning January 1, 6 2028, and for each subsequent assessment year, the maximum 7 exemption amounts under paragraph “b” shall be multiplied by 8 the cumulative adjustment factor for that assessment year. 9 “Cumulative adjustment factor” means the product of the annual 10 adjustment factor for the assessment year beginning January 11 1, 2027, and all annual adjustment factors for subsequent 12 assessment years. The cumulative adjustment factor applies to 13 the assessment year beginning in the calendar year for which 14 the latest annual adjustment factor has been determined. 15 (2) The annual adjustment factor for the assessment year 16 beginning January 1, 2027, is one hundred percent. For each 17 subsequent assessment year, the annual adjustment factor equals 18 the annual inflation factor for the calendar year, in which 19 the assessment year begins, as computed in section 422.4 for 20 purposes of the individual income tax. 21 (3) The cumulative adjustment factor shall be determined 22 annually by the department of revenue. > 23 20. By striking page 56, line 1, through page 57, line 5. 24 21. Page 60, after line 14 by inserting: 25 < Sec. ___. Section 425.17, subsection 4, Code 2026, is 26 amended to read as follows: 27 4. “Homestead” means the dwelling owned or rented and 28 actually used as a home by the claimant during the period 29 specified in subsection 2 , and so much of the land surrounding 30 it including one or more contiguous lots or tracts of land, 31 as is reasonably necessary for use of the dwelling as a home, 32 but not exceeding one-half acre, and may consist of a part of 33 a multidwelling or multipurpose building and a part of the 34 land upon which it is built. It does not include personal 35 -10- SF 2472.3906 (2) 91 md/jh 10/ 38 #19. #20. #21.
property except that a manufactured or mobile home may be 1 a homestead. Any dwelling or a part of a multidwelling or 2 multipurpose building which is exempt from taxation, except 3 for an exemption under section 425.1A , does not qualify as a 4 homestead under this subchapter . However, solely for purposes 5 of claimants living in a property and receiving reimbursement 6 for rent constituting property taxes paid immediately before 7 the property becomes tax exempt, and continuing to live in it 8 after it becomes tax exempt, the property shall continue to 9 be classified as a homestead. A homestead must be located 10 in this state. When a person is confined in a nursing home, 11 extended-care facility, or hospital, the person shall be 12 considered as occupying or living in the person’s homestead 13 if the person is the owner of the homestead and the person 14 maintains the homestead and does not lease, rent, or otherwise 15 receive profits from other persons for the use of the 16 homestead. > 17 22. By striking page 61, line 35, through page 64, line 7, 18 and inserting: 19 < Sec. ___. Section 347.7, Code 2026, is amended by adding 20 the following new subsection: 21 NEW SUBSECTION . 3A. a. (1) For the fiscal year beginning 22 July 1, 2027, and the fiscal year beginning July 1, 2028, any 23 property tax levy imposed for a county hospital under this 24 chapter that is limited by law to a specific property tax 25 levy rate per one thousand dollars of assessed value shall 26 not exceed a levy rate per one thousand dollars of assessed 27 value that is equal to one thousand multiplied by the quotient 28 obtained by dividing one hundred one and three-fourths percent 29 of the current fiscal year’s actual property tax dollars 30 certified for such levy by the remainder of the total assessed 31 value used to calculate such taxes for the budget year minus 32 value attributable to new valuation. 33 (2) For fiscal years beginning on or after July 1, 2029, 34 any property tax levy imposed for a county hospital under 35 -11- SF 2472.3906 (2) 91 md/jh 11/ 38 #22.
this chapter that is limited by law to a specific property 1 tax levy rate per one thousand dollars of assessed value 2 shall not exceed a levy rate per one thousand dollars of 3 assessed value that is equal to one thousand multiplied by the 4 quotient obtained by dividing one hundred five percent of the 5 current fiscal year’s actual property tax dollars certified 6 for such levy by the remainder of the total assessed value 7 used to calculate such taxes for the budget year minus value 8 attributable to new valuation. 9 b. For purposes of this subsection, “budget year” , “current 10 fiscal year” , and “new valuation” mean the same as defined in 11 section 331.423. 12 Sec. ___. Section 347A.3, Code 2026, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 3. a. (1) For the fiscal year beginning 15 July 1, 2027, and the fiscal year beginning July 1, 2028, any 16 property tax levy imposed for a county hospital under this 17 chapter that is limited by law to a specific property tax 18 levy rate per one thousand dollars of assessed value shall 19 not exceed a levy rate per one thousand dollars of assessed 20 value that is equal to one thousand multiplied by the quotient 21 obtained by dividing one hundred one and three-fourths percent 22 of the current fiscal year’s actual property tax dollars 23 certified for such levy by the remainder of the total assessed 24 value used to calculate such taxes for the budget year minus 25 value attributable to new valuation. 26 (2) For fiscal years beginning on or after July 1, 2029, 27 any property tax levy imposed for a county hospital under 28 this chapter that is limited by law to a specific property 29 tax levy rate per one thousand dollars of assessed value 30 shall not exceed a levy rate per one thousand dollars of 31 assessed value that is equal to one thousand multiplied by the 32 quotient obtained by dividing one hundred five percent of the 33 current fiscal year’s actual property tax dollars certified 34 for such levy by the remainder of the total assessed value 35 -12- SF 2472.3906 (2) 91 md/jh 12/ 38
used to calculate such taxes for the budget year minus value 1 attributable to new valuation. 2 b. For purposes of this subsection, “budget year” , “current 3 fiscal year” , and “new valuation” mean the same as defined in 4 section 331.423. 5 Sec. ___. Section 357F.8, Code 2026, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 3. a. (1) For the fiscal year beginning 8 July 1, 2027, and the fiscal year beginning July 1, 2028, any 9 property tax levy imposed for the district under this chapter 10 that is limited by law to a specific property tax levy rate per 11 one thousand dollars of assessed value shall not exceed a levy 12 rate per one thousand dollars of assessed value that is equal 13 to one thousand multiplied by the quotient obtained by dividing 14 one hundred one and three-fourths percent of the current fiscal 15 year’s actual property tax dollars certified for such levy by 16 the remainder of the total assessed value used to calculate 17 such taxes for the budget year minus value attributable to new 18 valuation. 19 (2) For fiscal years beginning on or after July 1, 2029, any 20 property tax levy imposed for the district under this chapter 21 that is limited by law to a specific property tax levy rate per 22 one thousand dollars of assessed value shall not exceed a levy 23 rate per one thousand dollars of assessed value that is equal 24 to one thousand multiplied by the quotient obtained by dividing 25 one hundred five percent of the current fiscal year’s actual 26 property tax dollars certified for such levy by the remainder 27 of the total assessed value used to calculate such taxes for 28 the budget year minus value attributable to new valuation. 29 b. For purposes of this subsection, “budget year” , “current 30 fiscal year” , and “new valuation” mean the same as defined in 31 section 331.423. 32 Sec. ___. Section 357G.8, Code 2026, is amended by adding 33 the following new subsection: 34 NEW SUBSECTION . 3. a. (1) For the fiscal year beginning 35 -13- SF 2472.3906 (2) 91 md/jh 13/ 38
July 1, 2027, and the fiscal year beginning July 1, 2028, any 1 property tax levy imposed for the district under this chapter 2 that is limited by law to a specific property tax levy rate per 3 one thousand dollars of assessed value shall not exceed a levy 4 rate per one thousand dollars of assessed value that is equal 5 to one thousand multiplied by the quotient obtained by dividing 6 one hundred one and three-fourths percent of the current fiscal 7 year’s actual property tax dollars certified for such levy by 8 the remainder of the total assessed value used to calculate 9 such taxes for the budget year minus value attributable to new 10 valuation. 11 (2) For fiscal years beginning on or after July 1, 2029, any 12 property tax levy imposed for the district under this chapter 13 that is limited by law to a specific property tax levy rate per 14 one thousand dollars of assessed value shall not exceed a levy 15 rate per one thousand dollars of assessed value that is equal 16 to one thousand multiplied by the quotient obtained by dividing 17 one hundred five percent of the current fiscal year’s actual 18 property tax dollars certified for such levy by the remainder 19 of the total assessed value used to calculate such taxes for 20 the budget year minus value attributable to new valuation. 21 b. For purposes of this subsection, “budget year” , “current 22 fiscal year” , and “new valuation” mean the same as defined in 23 section 384.1. 24 Sec. ___. NEW SECTION . 422D.5A Levy limitation. 25 1. a. For the fiscal year beginning July 1, 2027, and 26 the fiscal year beginning July 1, 2028, any property tax levy 27 imposed under this chapter that is limited by law to a specific 28 property tax levy rate per one thousand dollars of assessed 29 value shall not exceed a levy rate per one thousand dollars of 30 assessed value that is equal to one thousand multiplied by the 31 quotient obtained by dividing one hundred one and three-fourths 32 percent of the current fiscal year’s actual property tax 33 dollars certified for such levy by the remainder of the total 34 assessed value used to calculate such taxes for the budget year 35 -14- SF 2472.3906 (2) 91 md/jh 14/ 38
minus value attributable to new valuation. 1 b. For fiscal years beginning on or after July 1, 2029, 2 any property tax levy imposed under this chapter that is 3 limited by law to a specific property tax levy rate per one 4 thousand dollars of assessed value shall not exceed a levy rate 5 per one thousand dollars of assessed value that is equal to 6 one thousand multiplied by the quotient obtained by dividing 7 one hundred five percent of the current fiscal year’s actual 8 property tax dollars certified for such levy by the remainder 9 of the total assessed value used to calculate such taxes for 10 the budget year minus value attributable to new valuation. 11 2. For purposes of this section, “budget year” , “current 12 fiscal year” , and “new valuation” mean the same as defined in 13 section 331.423. > 14 23. Page 65, line 5, after < rate > by inserting < for a fiscal 15 year beginning on or after July 1, 2027, expressed in statute 16 as a specific amount of money due other than a calculated 17 amount, > 18 24. Page 65, line 6, by striking < taxes, but does not > and 19 inserting < taxes. This paragraph shall not be construed to > 20 25. Page 65, line 25, after < 2. > by inserting < a. > 21 26. Page 65, line 25, after < 2027, > by inserting < and the 22 fiscal year beginning July 1, 2028, > 23 27. Page 65, lines 27 and 28, by striking < fiscal year 24 beginning July 1, 2026, > and inserting < immediately preceding 25 fiscal year, > 26 28. Page 65, line 31, by striking < two > and inserting < one 27 and three-fourths > 28 29. Page 66, lines 3 and 4, by striking < fiscal year 29 beginning July 1, 2026 > and inserting < immediately preceding 30 fiscal year > 31 30. Page 66, after line 4 by inserting: 32 < b. For the fiscal year beginning July 1, 2029, each 33 rate-limited property tax levy may only be imposed if the 34 governmental entity imposed such levy for the immediately 35 -15- SF 2472.3906 (2) 91 md/jh 15/ 38 #23. #24. #25. #26. #27. #28. #29. #30.
preceding fiscal year, and shall, by operation of this section, 1 be limited to a levy rate per one thousand dollars of assessed 2 value that is equal to one thousand multiplied by the quotient 3 of one hundred two percent of the current fiscal year’s actual 4 property tax dollars certified for such levy divided by the 5 total assessed value used to calculate such taxes for the 6 budget year, but not less than a levy rate per one thousand 7 dollars of assessed value that results in an amount of actual 8 property tax dollars certified for levy for such levy equal to 9 one hundred and one-half percent of the actual property tax 10 dollars certified for such levy for the immediately preceding 11 fiscal year. > 12 31. Page 66, line 5, by striking < 2028 > and inserting < 2030 > 13 32. Page 66, line 9, by striking < fiscal year beginning July 14 1, 2026, > and inserting < immediately preceding fiscal year, > 15 33. Page 67, by striking lines 15 through 21 and inserting 16 < rates of property taxation imposed by governmental entities. > 17 34. By striking page 67, line 34, through page 68, line 18 2, and inserting < rates of property taxation imposed by 19 governmental entities, no later than January 15, 2028. > 20 35. Page 68, line 20, by striking < one-half > and inserting 21 < one-fourth > 22 36. Page 75, line 6, after < 2027, > by inserting < and the 23 fiscal year beginning July 1, 2028, > 24 37. Page 75, line 12, by striking < two > and inserting < one 25 and three-fourths > 26 38. Page 75, line 18, by striking < 2028 > and inserting 27 < 2029 > 28 39. Page 76, line 33, by striking < eighty > and inserting 29 < eighty-eight > 30 40. Page 77, line 9, by striking < eighty > and inserting 31 < eighty-eight > 32 41. Page 77, by striking lines 11 through 20 and inserting: 33 < b. (1) For the fiscal year beginning July 1, 2027, and 34 the fiscal year beginning July 1, 2028, the sum of property tax 35 -16- SF 2472.3906 (2) 91 md/jh 16/ 38 #31. #32. #33. #34. #35. #36. #37. #38. #39. #40. #41.
dollars levied for the regional transit district under this 1 subsection and property tax dollars received by the regional 2 transit district from participating cities and counties shall 3 not exceed an amount equal to one hundred one and three-fourths 4 percent of the sum of property tax dollars levied for the 5 regional transit district under this subsection for the 6 immediately preceding fiscal year and property tax dollars 7 received by the regional transit district from participating 8 cities and counties for the immediately preceding fiscal year. 9 (2) For each fiscal year beginning on or after July 1, 10 2029, the sum of property tax dollars levied for the regional 11 transit district under this subsection and property tax dollars 12 received by the regional transit district from participating 13 cities and counties shall not exceed an amount equal to one 14 hundred five percent of the sum of property tax dollars levied 15 for the regional transit district under this subsection for 16 the immediately preceding fiscal year and property tax dollars 17 received by the regional transit district from participating 18 cities and counties for the immediately preceding fiscal year. > 19 42. Page 77, line 27, by striking < eighty > and inserting 20 < eighty-eight > 21 43. Page 77, by striking lines 30 through 35 and inserting 22 < the levy rate limitation, for the fiscal year beginning July 23 1, 2027, and the fiscal year beginning July 1, 2028, the sum of 24 property tax dollars levied for the municipal transit system 25 under this paragraph shall not exceed an amount equal to one 26 hundred one and three-fourths percent of the sum of property 27 tax dollars levied for the municipal transit system under 28 this paragraph for the immediately preceding fiscal year. In 29 addition to the levy rate limitation, for each fiscal year 30 beginning on or after July 1, 2029, the sum of property tax 31 dollars levied for the municipal transit system under this 32 paragraph shall not exceed an amount equal to one hundred 33 five percent of the sum of property tax dollars levied for 34 the municipal transit system under this paragraph for the 35 -17- SF 2472.3906 (2) 91 md/jh 17/ 38 #42.
immediately preceding fiscal year. > 1 44. Page 78, line 4, by striking < eighty > and inserting 2 < eighty-eight > 3 45. Page 83, line 7, after < CENTERS > by inserting < AND WEB 4 SEARCH PORTAL BUSINESSES > 5 46. Page 83, line 24, after < center > by inserting < or a 6 qualified web search portal business > 7 47. Page 83, line 25, after < center > by inserting < or a 8 qualified web search portal business > 9 48. Page 84, line 1, after < Act. > by inserting < For purposes 10 of this paragraph, “qualified web search portal business” means 11 a web search portal business, as defined in section 423.3, 12 subsection 92 or 93, for which site preparation activities, as 13 defined in section 423.3, subsection 95, began on or after the 14 effective date of this division of this Act. > 15 49. By striking page 84, line 7, through page 93, line 35, 16 and inserting: 17 < DIVISION ___ 18 FIRSTHOME IOWA ACCOUNTS 19 Sec. ___. Section 12G.2, Code 2026, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 6. Create strategies for coordination of 22 the program with the FirstHome Iowa program trust established 23 in chapter 12L. 24 Sec. ___. NEW SECTION . 12L.1 FirstHome Iowa program —— 25 purpose and definitions. 26 1. The general assembly finds that the general welfare and 27 well-being of the state are directly related to homeownership 28 of the citizens of the state, and that a vital and valid 29 public purpose is served by the creation and implementation 30 of programs which encourage and make possible the attainment 31 of homeownership by the greatest number of citizens of the 32 state. The general welfare of the citizens of the state will 33 be enhanced by establishing a FirstHome Iowa program which 34 allows citizens of the state to invest money in a public trust 35 -18- SF 2472.3906 (2) 91 md/jh 18/ 38 #44. #45. #46. #47. #48. #49.
for future application to the payment of qualified homebuyer 1 expenses. The creation of the means of encouragement for 2 citizens to invest in such a program represents the carrying 3 out of a vital and valid public purpose. In order to make 4 available to the citizens of the state an opportunity to fund 5 future first-time homeownership, it is necessary that a public 6 trust be established in which moneys may be invested for future 7 use. 8 2. As used in this chapter, unless the context otherwise 9 requires: 10 a. “Administrative fund” means the administrative fund 11 established under section 12L.4. 12 b. “Beneficiary” means the individual designated by a 13 participation agreement to benefit from advance payments of 14 qualified homebuyer expenses on behalf of the beneficiary. 15 c. “First-time homebuyer” means an individual who is a 16 resident of Iowa and who does not own, either individually or 17 jointly, a single-family or multifamily residence, and who 18 has not previously owned or purchased, either individually or 19 jointly, a single-family or multifamily residence prior to the 20 date of the qualified purchase for which the eligible home 21 costs are paid or reimbursed from an account. 22 d. “FirstHome Iowa program trust” or “trust” means the trust 23 created under section 12L.2. 24 e. “FirstHome Iowa program trust account” or “account” 25 means an account within the trust that was established for 26 the purpose of paying or reimbursing a beneficiary’s eligible 27 qualified homebuyer expenses in connection with a qualified 28 purchase. 29 f. “Individual” means a natural person. 30 g. “Participant” means an individual, individual’s legal 31 representative, trust, or estate that has entered into a 32 participation agreement under this chapter, either individually 33 or jointly with the individual’s spouse, for the advance 34 payment of qualified homebuyer expenses on behalf of a 35 -19- SF 2472.3906 (2) 91 md/jh 19/ 38
beneficiary. 1 h. “Participation agreement” means an agreement between a 2 participant and the trust entered into under this chapter. 3 i. “Program fund” means the program fund established under 4 section 12L.4. 5 j. “Qualified homebuyer expenses” means any of the 6 following: 7 (1) A down payment or closing costs for the qualified 8 purchase of a single-family residence in Iowa that is to be the 9 homestead, as defined in section 425.11, of the beneficiary if 10 such beneficiary is a first-time homebuyer with respect to such 11 purchase. 12 (2) A cost, fee, tax, or payment incurred by, or charged 13 or assigned to, a beneficiary as part of the purchase under 14 subparagraph (1) and listed on the statement of receipts and 15 disbursements for the sale, including any statement prescribed 16 by 12 C.F.R. §1026.38, as amended. 17 (3) Any United States veterans administration funding 18 fee incurred by, or charged or assigned to, a beneficiary in 19 connection with a veterans administration home loan guaranty 20 program. 21 k. “Qualified purchase” means the purchase of a 22 single-family residence in Iowa by the account’s beneficiary 23 for which the account’s beneficiary will use as a homestead, as 24 defined in section 425.11, one year or more after the date the 25 participant first opened the account. 26 l. “Resident” means the same as defined in section 422.4. 27 m. “Single-family residence” means a single-family residence 28 owned and occupied by a beneficiary as the beneficiary’s 29 homestead within the meaning of section 425.1, including but 30 not limited to a manufactured home, mobile home, condominium 31 unit, or cooperative. 32 Sec. ___. NEW SECTION . 12L.2 Creation of FirstHome Iowa 33 program trust. 34 A FirstHome Iowa program trust is created. The treasurer of 35 -20- SF 2472.3906 (2) 91 md/jh 20/ 38
state is the trustee of the trust, and has all powers necessary 1 to carry out and effectuate the purposes, objectives, and 2 provisions of this chapter pertaining to the trust, including 3 the power to do all of the following: 4 1. Make and enter into contracts necessary for the 5 administration of the trust created under this chapter. 6 2. Enter into agreements with any financial institution, 7 the state, or any federal or other state agency, or other 8 entity as required to implement this chapter. 9 3. Carry out the duties and obligations of the trust 10 pursuant to this chapter. 11 4. Accept any grants, gifts, legislative appropriations, 12 and other moneys from the state, any unit of federal, state, or 13 local government, or any other person, firm, partnership, or 14 corporation which the treasurer of state shall deposit into the 15 administrative fund or the program fund. 16 5. Carry out studies and projections so the treasurer of 17 state may advise participants regarding present and estimated 18 future qualified homebuyer expenses and levels of financial 19 participation in the trust required in order to enable 20 participants to achieve their qualifying purchase objectives. 21 6. Participate in any federal, state, or local governmental 22 program for the benefit of the trust. 23 7. Procure insurance against any loss in connection with the 24 property, assets, or activities of the trust. 25 8. Enter into participation agreements with participants. 26 9. Make payments to or on behalf of beneficiaries for 27 qualified homebuyer expenses pursuant to participation 28 agreements. 29 10. Make refunds to participants upon the termination 30 of participation agreements, and partial nonqualified 31 distributions to participants, pursuant to the provisions, 32 limitations, and restrictions set forth in this chapter. 33 11. Invest moneys from the program fund in any investments 34 which are determined by the treasurer of state to be 35 -21- SF 2472.3906 (2) 91 md/jh 21/ 38
appropriate. 1 12. Engage investment advisors, if necessary, to assist in 2 the investment of trust assets. 3 13. Contract for goods and services and engage personnel 4 as necessary, including consultants, actuaries, managers, 5 legal counsel, and auditors for the purpose of rendering 6 professional, managerial, and technical assistance and advice 7 to the treasurer of state regarding trust administration and 8 operation. 9 14. Establish, impose, and collect administrative fees 10 and charges in connection with transactions of the trust for 11 deposit in the administrative fund and provide for reasonable 12 service charges. 13 15. Administer the funds of the trust. 14 16. Adopt rules pursuant to chapter 17A for the 15 administration of the trust. 16 Sec. ___. NEW SECTION . 12L.3 Participation agreements for 17 trust. 18 The trust may enter into participation agreements with 19 participants on behalf of beneficiaries pursuant to the 20 following terms and agreements: 21 1. Each participation agreement may require a participant 22 to agree to invest a specific amount of money in the trust 23 for a specific period of time for the benefit of a specific 24 beneficiary. A participant shall not be required to make an 25 annual contribution on behalf of a beneficiary. The maximum 26 contribution that may be deducted for Iowa income tax purposes 27 shall be the amount contributed by the participant during the 28 applicable tax year, not to exceed five thousand five hundred 29 dollars per beneficiary per year adjusted annually to reflect 30 increases in the consumer price index. 31 2. The execution of a participation agreement by the 32 trust shall not guarantee in any way that qualified homebuyer 33 expenses will be equal to projections and estimates provided by 34 the trust or that the beneficiary named in any participation 35 -22- SF 2472.3906 (2) 91 md/jh 22/ 38
agreement will qualify for a mortgage, home loan, or other 1 forms of credit for a qualified purchase. 2 3. a. A beneficiary under a participation agreement may be 3 changed as permitted under rules adopted by the treasurer of 4 state upon written request of the participant as long as the 5 substitute beneficiary is eligible for participation. 6 b. Participation agreements may otherwise be freely amended 7 throughout their terms in order to enable participants to 8 increase or decrease the level of participation, change the 9 designation of beneficiaries, and carry out similar matters as 10 authorized by rule. 11 4. Each participation agreement shall provide that the 12 participation agreement may be canceled upon the terms and 13 conditions, and upon payment of applicable fees and costs set 14 forth and contained in the rules adopted by the treasurer of 15 state. 16 5. A participant may designate a successor in accordance 17 with rules adopted by the treasurer of state. The designated 18 successor shall succeed to the ownership of the account in 19 the event of the death of the participant. In the event a 20 participant dies and has not designated a successor to the 21 account, the following criteria shall apply: 22 a. The beneficiary of the account, if eighteen years of 23 age or older, shall become the owner of the account as well as 24 remain the beneficiary upon filing the appropriate forms in 25 accordance with rules adopted by the treasurer of state. 26 b. If the beneficiary of the account is under the age of 27 eighteen, account ownership shall be transferred to the first 28 surviving parent or other legal guardian of the beneficiary to 29 file the appropriate forms in accordance with rules adopted by 30 the treasurer of state. 31 Sec. ___. NEW SECTION . 12L.4 FirstHome Iowa program and 32 administrative funds —— investment and payments. 33 1. a. The treasurer of state shall segregate moneys 34 received by the trust into two funds: the FirstHome Iowa 35 -23- SF 2472.3906 (2) 91 md/jh 23/ 38
program fund and the administrative fund to be used for 1 administration of the program. 2 b. All moneys paid by participants in connection with 3 participation agreements shall be deposited as received into 4 separate accounts within the program fund. 5 c. Contributions to the trust made by participants may only 6 be made in the form of cash. 7 d. A participant or beneficiary may, directly or indirectly, 8 direct the investment of any contributions to the trust or any 9 earnings thereon no more than four times in a calendar year. 10 2. Moneys accrued by participants in the program fund of the 11 trust may be used for payments to or on behalf of a beneficiary 12 for qualified homebuyer expenses. 13 Sec. ___. NEW SECTION . 12L.5 Cancellation of agreements. 14 A participant may cancel a participation agreement at will. 15 Upon cancellation of a participation agreement, a participant 16 shall be entitled to the return of the participant’s account 17 balance. 18 Sec. ___. NEW SECTION . 12L.6 Ownership of payments and 19 investment income —— transfer of ownership rights. 20 1. a. A participant retains ownership of all payments 21 made under a participation agreement up to the date of 22 utilization for payment of qualified homebuyer expenses for the 23 beneficiary. 24 b. All income derived from the investment of the payments 25 made by the participant shall be considered to be held in trust 26 for the benefit of the beneficiary. 27 2. In the event the FirstHome Iowa program is terminated 28 prior to payment of qualified homebuyer expenses for the 29 beneficiary, the participant is entitled to a refund of the 30 participant’s account balance. 31 3. Any amounts which may be paid to any person or persons 32 pursuant to the FirstHome Iowa program trust but which are not 33 listed in this section are owned by the trust. 34 4. A participant may transfer ownership rights to another 35 -24- SF 2472.3906 (2) 91 md/jh 24/ 38
participant or may transfer funds to another account under the 1 trust. The transfer shall be made and the property distributed 2 in accordance with rules adopted by the treasurer of state or 3 with the terms of the participation agreement. 4 5. A participant shall not be entitled to utilize any 5 interest in the trust as security for a loan. 6 Sec. ___. NEW SECTION . 12L.7 Annual audited financial 7 report to governor and general assembly. 8 1. a. The treasurer of state shall submit an annual 9 audited financial report, prepared in accordance with generally 10 accepted accounting principles, on the operations of the trust 11 by November 1 to the governor and the general assembly. 12 b. The annual audit shall be made either by the auditor 13 of state or by an independent certified public accountant 14 designated by the auditor of state and shall include direct and 15 indirect costs attributable to the use of outside consultants, 16 independent contractors, and any other persons who are not 17 state employees. 18 2. The annual audit shall be supplemented by all of the 19 following information prepared by the treasurer of state: 20 a. Any related studies or evaluations prepared in the 21 preceding year. 22 b. A summary of the benefits provided by the trust including 23 the number of participants and beneficiaries in the trust. 24 c. Any other information which is relevant in order to make 25 a full, fair, and effective disclosure of the operations of the 26 trust. 27 Sec. ___. NEW SECTION . 12L.8 Tax considerations. 28 State income tax treatment of the FirstHome Iowa program 29 trust shall be as provided in section 422.7, subsections 46 and 30 47. 31 Sec. ___. NEW SECTION . 12L.9 Property rights to assets in 32 trust. 33 1. The assets of the trust shall at all times be preserved, 34 invested, and expended solely and only for the purposes of 35 -25- SF 2472.3906 (2) 91 md/jh 25/ 38
the trust and shall be held in trust for the participants and 1 beneficiaries. 2 2. No property rights in the trust shall exist in favor of 3 the state. 4 3. The assets of the trust shall not be transferred or used 5 by the state for any purposes other than the purposes of the 6 trust. 7 Sec. ___. NEW SECTION . 12L.10 Construction. 8 This chapter shall be construed liberally in order to 9 effectuate its purpose. 10 Sec. ___. Section 232D.503, subsection 6, Code 2026, is 11 amended by adding the following new paragraph: 12 NEW PARAGRAPH . g. A FirstHome Iowa program trust account 13 established for the minor pursuant to chapter 12L. 14 Sec. ___. Section 422.7, Code 2026, is amended by adding the 15 following new subsections: 16 NEW SUBSECTION . 46. a. Subtract the contribution that may 17 be deducted for Iowa income tax purposes as a participant in 18 the FirstHome Iowa program trust pursuant to section 12L.3, 19 subsection 1. For purposes of this paragraph, a participant 20 who makes a contribution on or before the date prescribed in 21 section 422.21 for making and filing an individual income tax 22 return, excluding extensions, or the date for making and filing 23 an individual income tax return determined by the director 24 pursuant to an order issued under section 421.17, subsection 25 30, may elect to be deemed to have made the contribution on the 26 last day of the preceding calendar year. The director, after 27 consultation with the treasurer of state, shall prescribe by 28 rule the manner and method by which a participant may make an 29 election authorized by the preceding sentence. 30 b. Add the amount resulting from the cancellation of 31 a participation agreement refunded to the taxpayer as a 32 participant in the FirstHome Iowa program trust to the extent 33 previously deducted as a contribution to the trust. 34 c. Add, to the extent previously deducted as a contribution 35 -26- SF 2472.3906 (2) 91 md/jh 26/ 38
to the trust, the amount resulting from a withdrawal or 1 transfer made by the taxpayer from the FirstHome Iowa program 2 trust for purposes other than the payment of qualified 3 homebuyer expenses. 4 NEW SUBSECTION . 47. Subtract, to the extent included, 5 income from interest and earnings received from the FirstHome 6 Iowa program trust created in chapter 12L. 7 Sec. ___. Section 541B.4, Code 2026, is amended by adding 8 the following new subsections: 9 NEW SUBSECTION . 5. Withdrawal for deposit into FirstHome 10 Iowa program trust account. First-time homebuyer account 11 balances under this chapter may be withdrawn without penalty or 12 taxation in this state if such withdrawal is deposited in an 13 account within the FirstHome Iowa program trust under chapter 14 12L within thirty days of the withdrawal. The treasurer of 15 state may by rule provide for the direct transfer of moneys 16 within an account under this chapter to a FirstHome Iowa 17 program trust account and such transfer shall not be subject to 18 penalty or taxation in this state. 19 NEW SUBSECTION . 6. No new accounts. New accounts shall not 20 be established under this chapter on or after July 1, 2026. 21 Sec. ___. Section 627.6, Code 2026, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 18. The debtor’s interest, whether as 24 participant or beneficiary, in contributions and assets, 25 including the accumulated earnings and market increases in 26 value, held in an account in the FirstHome Iowa program trust 27 organized under chapter 12L. 28 Sec. ___. Section 633.108, subsection 2, Code 2026, is 29 amended by adding the following new paragraph: 30 NEW PARAGRAPH . e. A FirstHome Iowa program trust account 31 established for the minor pursuant to chapter 12L. 32 Sec. ___. Section 633.555, subsection 1, Code 2026, is 33 amended by adding the following new paragraph: 34 NEW PARAGRAPH . f. An account owner or participant under 35 -27- SF 2472.3906 (2) 91 md/jh 27/ 38
a FirstHome Iowa program trust account established for the 1 protected person pursuant to chapter 12L. 2 Sec. ___. Section 633.678, subsection 1, Code 2026, is 3 amended by adding the following new paragraph: 4 NEW PARAGRAPH . f. An account owner or participant under 5 a FirstHome Iowa program trust account established for the 6 protected person pursuant to chapter 12L. 7 Sec. ___. Section 633.681, subsection 1, Code 2026, is 8 amended by adding the following new paragraph: 9 NEW PARAGRAPH . e. An account owner or participant under 10 a FirstHome Iowa program trust account established for the 11 protected person pursuant to chapter 12L. 12 Sec. ___. APPLICABILITY. The following applies to 13 contributions made under chapter 12L on or after July 1, 2026, 14 for tax years ending on or after that date: 15 The section of this division of this Act enacting section 16 422.7, subsections 46 and 47. > 17 50. Page 96, after line 32 by inserting: 18 < DIVISION ___ 19 PROPERTY TAX EXEMPTIONS —— IMPOUNDMENT STRUCTURES AND 20 SPECULATIVE SHELL BUILDINGS 21 Sec. ___. Section 331.401, subsection 1, paragraph i, Code 22 2026, is amended by striking the paragraph. 23 Sec. ___. Section 427.1, subsections 20 and 27, Code 2026, 24 are amended by striking the subsections. 25 Sec. ___. EFFECTIVE DATE. This division of this Act takes 26 effect January 1, 2031. 27 Sec. ___. APPLICABILITY. This division of this Act applies 28 to assessment years beginning on or after January 1, 2031. 29 DIVISION ___ 30 SCHOOL DISTRICT UNSPENT BALANCES —— ON-TIME FUNDING AND 31 MODIFIED SUPPLEMENTAL AMOUNTS 32 Sec. ___. Section 257.7, Code 2026, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 3. Unspent balances. For school budget 35 -28- SF 2472.3906 (2) 91 md/jh 28/ 38 #50.
years beginning on or after July 1, 2026, a school district’s 1 actual unspent balance from the preceding year used to 2 calculate the authorized budget under subsection 1 shall 3 not exceed an amount equal to thirty-five percent of the 4 school district’s authorized expenditures for the budget year 5 immediately preceding the base year unless a greater amount 6 is authorized by the school budget review committee based on 7 one or more grounds authorized for the approval of a modified 8 supplemental amount under section 257.31. 9 Sec. ___. Section 257.13, Code 2026, is amended to read as 10 follows: 11 257.13 On-time funding budget adjustment. 12 1. a. For the school budget year beginning July 1, 2001, 13 and succeeding budget years beginning before July 1, 2026 , if a 14 district’s actual enrollment for the budget year, determined 15 under section 257.6 , is greater than its budget enrollment for 16 the budget year, the district shall be eligible to receive an 17 on-time funding budget adjustment. The adjustment shall be in 18 an amount equal to the difference between the actual enrollment 19 for the budget year and the budget enrollment for the budget 20 year, multiplied by the district cost per pupil. 21 2. b. The board of directors of a school district that 22 wishes to receive an on-time funding budget adjustment under 23 this subsection shall adopt a resolution to receive the 24 adjustment and notify the school budget review committee 25 annually, but not earlier than November 1, as determined by the 26 department of education. The school budget review committee 27 shall establish a modified supplemental amount pursuant to 28 subsection 1 paragraph “a” . 29 2. a. For the school budget years beginning on or after 30 July 1, 2026, if a district’s actual enrollment for the budget 31 year, determined under section 257.6, is greater than its 32 budget enrollment for the budget year, the district may request 33 an on-time budget adjustment. The adjustment shall not exceed 34 an amount equal to the difference between the actual enrollment 35 -29- SF 2472.3906 (2) 91 md/jh 29/ 38
for the budget year and the budget enrollment for the budget 1 year, multiplied by the district cost per pupil. 2 b. To request an on-time budget adjustment under this 3 subsection, the board of directors of a school district shall 4 adopt a resolution to receive the adjustment and notify the 5 school budget review committee on or before a date established 6 by the committee. The school budget review committee may 7 establish a modified supplemental amount pursuant to paragraph 8 “a” . 9 3. If the board of directors of a school district determines 10 that a need exists for additional funds exceeding the on-time 11 funding budget adjustment pursuant to this section , a request 12 for a modified supplemental amount based upon increased 13 enrollment may be submitted to the school budget review 14 committee as provided in section 257.31 . 15 Sec. ___. NEW SECTION . 279.63A Unspent balance —— policy. 16 1. The board of directors of each school district shall 17 establish a policy that defines a targeted range and maximum 18 amount of unspent balance of authorized expenditures, 19 determined by a percent of authorized expenditures under 20 section 257.7 or other methodology specified in the policy. 21 The policy shall also state the date the policy was adopted 22 and the date the policy was most recently reviewed or revised 23 under subsection 2. The targeted range and maximum amount 24 established in the policy shall be made with the intent to 25 equalize educational opportunity, provide a good education 26 for all the children of the school district, provide property 27 tax relief, decrease the percentage of school costs paid from 28 property taxes, and to provide reasonable control of school 29 costs. 30 2. Targeted ranges and maximum amounts defined in the policy 31 under subsection 1 shall be reviewed annually by the board of 32 directors and such review shall be entered in the minutes of 33 the board and approved revisions shall be made to the policy. 34 Sec. ___. EFFECTIVE DATE. This division of this Act, being 35 -30- SF 2472.3906 (2) 91 md/jh 30/ 38
deemed of immediate importance, takes effect upon enactment. 1 DIVISION ___ 2 PROPERTY PARCEL INFORMATION 3 Sec. ___. Section 331.510, Code 2026, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 5. a. An annual report not later 6 than January 1 to the department of management containing 7 parcel-level property data, including parcel identification 8 information, location, size, valuation, classification, types 9 of structures and improvements, exemptions, credits, historical 10 amounts of property taxes due and payable, and whether the 11 parcel is subject to a division of revenue. 12 b. In addition to the information required under paragraph 13 “a” , the department of management may require additional 14 parcel-level data deemed necessary by the director of the 15 department of management. The department shall prescribe the 16 form and manner of submitting the annual report under this 17 subsection. 18 DIVISION ___ 19 URBAN RENEWAL 20 Sec. ___. NEW SECTION . 403.18A Division of revenue 21 ordinances duration —— limitations. 22 1. An ordinance providing for a division of revenue under 23 section 403.19 adopted before the effective date of this 24 division of this Act and that is not limited in duration under 25 section 403.17, subsection 10, or section 403.22, subsection 5, 26 shall be subject to the duration limitation in subsection 2. 27 2. a. A division of revenue ordinance described in 28 subsection 1 may continue in effect under this chapter until 29 such time that the urban renewal area is dissolved by the 30 municipality, the ordinance is repealed by the municipality, or 31 the ordinance terminates under the conditions of paragraph “c” , 32 whichever occurs first. 33 b. A municipality shall not incur additional indebtedness 34 including loans, advances, and bonds, payable from the special 35 -31- SF 2472.3906 (2) 91 md/jh 31/ 38
fund created in section 403.19 using revenue resulting from 1 the ordinance described under subsection 1 on or after the 2 effective date of this division of this Act. For the purposes 3 of this paragraph “b” , the refinancing of indebtedness incurred 4 prior to the effective date of this division of this Act 5 shall not constitute an additional indebtedness, unless such 6 refinancing results in an increase in the amount of debt 7 service that qualifies for payment from the special fund or 8 extends the term for payment or retirement of the indebtedness. 9 c. An ordinance described in subsection 1 providing for a 10 division of revenue shall terminate and be of no further force 11 and effect at the conclusion of the fiscal year during which 12 the retirement or payment of all indebtedness payable from such 13 division of revenue in existence on the effective date of this 14 division of this Act occurs or after twenty years following 15 the effective date of this division of this Act, whichever 16 occurs first. Upon request filed by the municipality, the 17 department of management may extend the termination date under 18 this paragraph if such an extension is necessary to retire and 19 pay all indebtedness incurred prior to the effective date of 20 this division of this Act. 21 d. An ordinance described in subsection 1 or any applicable 22 urban renewal area shall not be amended on or after the 23 effective date of this division of this Act to include 24 territory that is not subject to the ordinance on the effective 25 date of this division of this Act. 26 3. The duration limits under this section and the 27 limitations on the duration of ordinances providing for a 28 division of revenue under section 403.19, subsection 3A, shall 29 not apply to divisions of taxes established by community 30 colleges under chapter 260E or rural improvement zones under 31 chapter 357H. 32 4. The department of management may adopt rules pursuant to 33 chapter 17A necessary to implement and administer this section. 34 Sec. ___. Section 403.19, subsection 2, paragraph a, Code 35 -32- SF 2472.3906 (2) 91 md/jh 32/ 38
2026, is amended to read as follows: 1 a. That portion of the taxes each year in excess of such 2 amount shall be allocated to and when collected be paid into a 3 special fund of the municipality to pay the principal of and 4 interest on loans, moneys advanced to, or indebtedness, whether 5 funded, refunded, assumed, or otherwise, including bonds 6 issued under the authority of section 403.9, subsection 1 , 7 incurred by the municipality to finance or refinance, in whole 8 or in part, an urban renewal project within the area, and to 9 provide assistance for low and moderate income family housing 10 as provided in section 403.22 . However, except as provided 11 in paragraph “b” , taxes for the regular and voter-approved 12 physical plant and equipment levy of a school district imposed 13 pursuant to section 298.2 ; and taxes for the instructional 14 support program of a school district imposed pursuant to 15 section 257.19 , ; taxes for the payment of bonds and interest 16 of each taxing district , ; taxes levied against wind energy 17 conversion property, as defined in section 427B.26, for which 18 construction begins on or after the effective date of this 19 division of this Act; foundation property taxes of a school 20 district imposed under section 257.3 levied against property 21 upon which new construction or renovations begin on or after 22 the effective date of this division of this Act, unless such 23 construction or renovations were approved and subject to an 24 agreement adopted before January 1, 2027; taxes for emergency 25 medical services imposed pursuant to chapter 357F, 357G, or 26 422D; and taxes imposed under section 346.27, subsection 22 , 27 related to joint county-city buildings shall be collected 28 against all taxable property within the taxing district without 29 limitation by the provisions of this subsection . 30 Sec. ___. Section 403.19, Code 2026, is amended by adding 31 the following new subsection: 32 NEW SUBSECTION . 3A. An ordinance providing for a division 33 of revenue under this section that is adopted on or after the 34 effective date of this division of this Act and that is not 35 -33- SF 2472.3906 (2) 91 md/jh 33/ 38
limited in duration under section 403.17, subsection 10, or 1 section 403.22, subsection 5, shall be limited to twenty years 2 from the calendar year following the calendar year in which the 3 municipality first certifies to the county auditor the amount 4 of any loans, advances, indebtedness, or bonds that qualify 5 for payment from the division of revenue provided for in this 6 section. The ordinance shall terminate and be of no further 7 force and effect following the twenty-year period provided in 8 this subsection. 9 Sec. ___. Section 403.19, Code 2026, is amended by adding 10 the following new subsections: 11 NEW SUBSECTION . 9A. a. In addition to the limitations 12 and requirements for relocations under subsection 9, moneys 13 from any source deposited into the special fund created in 14 this section shall not be expended for or otherwise used 15 in connection with an urban renewal project approved on 16 or after the effective date of this division of this Act 17 that includes the relocation of a commercial or industrial 18 enterprise receiving assistance or incentives from a different 19 municipality’s special fund under this section and not 20 presently located within the municipality, if the total amount 21 of assistance or incentives for such enterprise exceeds the 22 total amount of assistance or incentives received or agreed to 23 be received from the other municipality. 24 b. For the purposes of this subsection, “relocation” 25 means the closure or substantial reduction of an enterprise’s 26 existing operations in one area of the state and the initiation 27 of substantially the same operation in the same metropolitan 28 statistical area. This subsection does not prohibit an 29 enterprise from expanding its operations in another area of the 30 state provided that existing operations of a similar nature are 31 not closed or substantially reduced. 32 NEW SUBSECTION . 12. For any fiscal year beginning on 33 or after July 1, 2027, following written request filed with 34 the county auditor and the board of directors of the school 35 -34- SF 2472.3906 (2) 91 md/jh 34/ 38
district, a school district may approve by resolution of the 1 board of directors the payment from the school district’s 2 general fund to the municipality for deposit in the special 3 fund under this section all or a portion of the school 4 district’s foundation property taxes under section 257.3 levied 5 against property upon which new construction or renovations 6 begin on or after the effective date of this division of this 7 Act, unless such construction or renovations were approved and 8 subject to an agreement adopted before January 1, 2027, for one 9 or more applicable fiscal years. If approved, the board of 10 directors shall file such resolution with the county auditor. 11 Payments approved under this subsection are voluntary and a 12 school district is not required to pay over the revenue to the 13 municipality unless approved by resolution. Amounts paid by 14 a school district under this subsection shall continue to be 15 considered foundation property taxes levied under section 257.3 16 and such payment shall not result in the adjustment of state 17 foundation aid or other amounts under chapter 257. 18 Sec. ___. Section 403.19, subsection 10, Code 2026, is 19 amended by adding the following new paragraph: 20 NEW PARAGRAPH . c. For fiscal years beginning on or after 21 July 1, 2027, moneys from any source deposited into the special 22 fund created in this section shall not be expended for salaries 23 or benefits of a permanent staff member of a municipality or 24 local or regional economic development entity. 25 Sec. ___. URBAN RENEWAL REPORT —— TASK FORCE. 26 1. By January 1, 2027, the department of revenue shall 27 prepare and submit a report, including any recommended changes, 28 to the general assembly regarding statewide use of chapter 403 29 and divisions of revenue. 30 2. The department of revenue shall convene a task force of 31 local and state officials, state legislators, and technical 32 experts to assist in the review undertaken pursuant to 33 subsection 1. 34 Sec. ___. EFFECTIVE DATE. This division of this Act, being 35 -35- SF 2472.3906 (2) 91 md/jh 35/ 38 #1.
deemed of immediate importance, takes effect upon enactment. 1 Sec. ___. APPLICABILITY. The following applies to property 2 taxes due and payable in fiscal years beginning on or after 3 July 1, 2027: 4 The section of this division of this Act amending section 5 403.19, subsection 2, paragraph “a”. 6 DIVISION ___ 7 PROPERTY TAX DEFERRAL —— TASK FORCE 8 Sec. ___. PROPERTY TAX DEFERRAL TASK FORCE —— REPORT. 9 1. By January 10, 2027, the department of revenue shall 10 prepare and submit a report approved by the task force created 11 under subsection 2, including recommended legislative actions, 12 to the general assembly regarding the establishment of a 13 program under which low-income elderly homestead owners may 14 apply to defer property taxes owed until the occurrence of a 15 qualifying event, including but not limited to death of the 16 owner, sale of the property, or transfer of the property to 17 someone other than a surviving spouse. 18 2. The department shall convene a task force consisting of 19 at least all of the following persons: 20 a. The director of revenue, or the director’s designee. 21 b. The director of the department of management, or the 22 director’s designee. 23 c. A representative of the Iowa league of cities. 24 d. A representative of the Iowa state association of 25 counties. 26 e. Three homestead owners from this state, selected by the 27 director of revenue. 28 f. Four ex officio, nonvoting legislative members 29 consisting of the following: 30 (1) Two state senators, one appointed by the president of 31 the senate after consultation with the majority leader of the 32 senate and one appointed by the minority leader of the senate 33 from their respective parties. 34 (2) Two state representatives, one appointed by the speaker 35 -36- SF 2472.3906 (2) 91 md/jh 36/ 38 #1.
and one appointed by the minority leader of the house of 1 representatives from their respective parties. 2 3. Task force meetings shall be open to the public. 3 4. The task force shall compile and analyze at least all of 4 the following prior to preparation of the department’s report 5 under subsection 1: 6 a. An inventory of potentially eligible property in the 7 state. 8 b. Feasible program structures. 9 c. Possible methods for calculation and payment of deferred 10 amounts. 11 d. Implementation timelines and procedures. 12 DIVISION ___ 13 PAYMENTS IN LIEU OF PROPERTY TAXES —— TASK FORCE 14 Sec. ___. PAYMENTS IN LIEU OF PROPERTY TAXES TASK FORCE —— 15 REPORT. 16 1. By January 10, 2027, the department of revenue shall 17 prepare and submit a report approved by the task force created 18 under subsection 2, including recommended legislative actions, 19 to the general assembly regarding the establishment of a 20 program under which counties may implement a program for the 21 collection of payments in lieu of property taxes from owners of 22 property that is exempt, in whole or in part, from ad valorem 23 property taxes, but excluding government-owned property. 24 2. The department shall convene a task force consisting of 25 at least all of the following persons: 26 a. The director of revenue, or the director’s designee. 27 b. The director of the department of management, or the 28 director’s designee. 29 c. All members of the Polk county board of supervisors. 30 d. One mayor from a city located, in whole or in part, 31 within Polk county, selected by the director of revenue. 32 e. Three representatives from tax-exempt entities located 33 in Polk county of varying sizes, selected by the director of 34 revenue. 35 -37- SF 2472.3906 (2) 91 md/jh 37/ 38 #1.
f. One private property owner, selected by the director of 1 revenue. 2 g. Four ex officio, nonvoting legislative members 3 consisting of the following: 4 (1) Two state senators, one appointed by the president of 5 the senate after consultation with the majority leader of the 6 senate and one appointed by the minority leader of the senate 7 from their respective parties. 8 (2) Two state representatives, one appointed by the speaker 9 and one appointed by the minority leader of the house of 10 representatives from their respective parties. 11 3. Task force meetings shall be open to the public. 12 4. The task force shall compile and analyze at least all of 13 the following prior to preparation of the department’s report 14 under subsection 1: 15 a. An inventory of tax-exempt property. 16 b. Interest and feasibility of county participation in such 17 a program. 18 c. Feasible program structures. 19 d. Possible methods for calculation of program payment 20 amounts, not to exceed the proportionate amount of a county’s 21 budget for law enforcement, fire protection, and public works 22 services. 23 e. Implementation timelines and procedures. > 24 51. Title page, line 3, after < revenue, > by inserting 25 < establishing a program for first-time homebuyers, > 26 52. By renumbering, redesignating, and correcting internal 27 references as necessary. 28 ______________________________ DAN DAWSON -38- SF 2472.3906 (2) 91 md/jh 38/ 38 #51. #52.