S-5210

   Amend Senate File 2472Senate File 2472, as amended, passed, and reprinted by the Senate, as follows:
   1.  By striking everything after the enacting clause and inserting: 
<DIVISION I
PROPERTY TAX REVENUE LIMITATIONS —— BOND REVENUE USE LIMITATIONS —— GENERAL FUND RESERVES

   Section 1.  Section 11.11, Code 2026, is amended to read as follows:
   11.11  Scope of audits.
   The written report of the audit of a governmental subdivision shall include the auditor’s opinion as to whether a governmental subdivision’s financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles or with an other another comprehensive basis of accounting. As a part of conducting an audit of a governmental subdivision, an evaluation of internal control and tests for compliance with laws and regulations shall be performed. As part of conducting an audit of a governmental subdivision, an examination of the governmental subdivision’s compliance with the reporting requirements of section 331.403, subsection 3, or section 384.22, subsection 2, if applicable, shall be performed.  As part of conducting an audit of a governmental subdivision for fiscal years beginning on or after July 1, 2027, an examination of the governmental subdivision’s compliance with section 24.35 shall be performed, including verification of the circumstances resulting in actual reserve funds exceeding the specified limits.
   Sec. 2.  Section 24.34, Code 2026, is amended to read as follows:
   24.34  Unliquidated obligations.
   A city, county, or other political subdivision governmental entity, as defined in section 24.35, may establish an encumbrance system for any obligation not liquidated at the close of the fiscal year in which the obligation has been encumbered assigned, committed, restricted, or specified as nonspendable. The encumbered obligations may be retained upon the books of the city, county, or other political subdivision governmental entity, as defined in section 24.35, until liquidated, all in accordance with generally accepted governmental accounting practices principles, as established by the governmental accounting standards board.
   Sec. 3.  NEW SECTION.  24.35  General fund reserves —— limitations.
   1.  For purposes of this section:
   a.  “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified.
   b.  “Current fiscal year” is the fiscal year ending during the calendar year in which a budget for the budget year is certified.
   c.  “General fund” means a governmental entity’s fund designated as such by law or the governmental entity’s fund from which primary general operations of the governmental entity are funded.
   d.  “Governmental entity” means any unit of government or other public body or public corporation, including any intergovernmental entity, that has the power to impose or certify a property tax levy. “Governmental entity” does not include a school district.
   e.  “Unassigned” means funds that are not restricted, committed, assigned, or nonspendable within the meaning of generally accepted accounting principles, as established by the governmental accounting standards board.
   2.  a.  For budgets certified for budget years beginning on or after July 1, 2027, proposed unassigned reserve funds identified within a governmental entity’s general fund shall not exceed an amount equal to thirty-five percent of the budgeted expenditures from the governmental entity’s general fund for the current fiscal year prior to budgeted transfers from such general fund.
   b.  If the governmental entity’s budget does not comply with the requirements of paragraph “a”, the department of management shall not certify the governmental entity’s taxes back to the county auditor under section 24.17 and the governmental entity shall remedy the violation and recertify the budget.
   3.  Each governmental entity shall establish an obligated funds account within the governmental entity’s general fund. Restricted, committed, assigned, or nonspendable funds within the meaning of generally accepted accounting principles, as established by the governmental accounting standards board, shall be deposited in and accounted for in the obligated funds account, including but not limited to such funds that are in the governmental entity’s general fund for the purchase, lease-purchase, or major refurbishment of law enforcement, public safety, and public works vehicles and equipment and for vertical infrastructure and horizontal infrastructure projects.
   4.  To ensure uniformity, accuracy, and efficiency in the certification of governmental entity budgets according to the requirements of this section, the department of management shall prescribe the procedures to be used and instruct the appropriate officials of the various governmental entities on implementation of the procedures.
   Sec. 4.  Section 24.48, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  The authority to suspend property tax levy limitations under this section shall not apply to the limitations of section 444.25.
   Sec. 5.  Section 176A.8, subsection 13, Code 2026, is amended by striking the subsection.
   Sec. 6.  NEW SECTION.  444.25  Maximum property tax levy dollars.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified.
   b.  “Current fiscal year” is the fiscal year ending during the calendar year in which a budget for the budget year is certified.
   c.  “Governmental entity” means any unit of government or other public body or public corporation, including any intergovernmental entity or special purpose district, that has the power to impose or certify a property tax levy. “Governmental entity” does not include a school district.
   d.  “New valuation” means the increase from the current fiscal year to the budget year in taxable valuation, as shown on the assessment roll due to the following, the amount of each as reported under section 331.510 by the county auditor to the department of management:
   (1)  New construction.
   (2)  Additions or improvements to existing structures that are not normal and necessary repairs under section 441.21, subsection 8.
   (3)  Net boundary adjustments, including annexation, severance, incorporation, consolidation, or discontinuance as those terms are defined in section 368.1.
   (4)  Valuation exempt from property tax for the current fiscal year as the result of prior new construction, additions, or improvements under section 15.332, Code 2025, section 15.500, chapter 404, or chapter 427B, subchapter I, but which is not exempt from property tax in the budget year.
   e.  “Property tax levy” means each ad valorem property tax authorized by law to be imposed by a governmental entity, but excluding any levy the revenue from which is specified by law for debt service or required to be used exclusively for the repayment of bonds or other indebtedness.
   2.  a.  For the budget year beginning July 1, 2027, and each budget year thereafter, the maximum aggregate amount of property tax dollars that may be certified for levy among all property tax levies imposed by a governmental entity against property that is not new valuation shall not exceed an amount equal to the sum of one hundred two percent of the aggregate amount of property tax dollars certified for levy by the governmental entity among all property tax levies imposed by the governmental entity for the current fiscal year.
   b.  If the budget year includes a voter-approved property tax levy, or an increased rate thereof, that was not approved for imposition in the current fiscal year, the maximum aggregate amount of property tax dollars for the governmental entity under paragraph “a” for the budget year shall be increased by the amount of the voter-approved property tax levy or the voter-approved rate increase, as applicable, approved at election for the budget year. If the current fiscal year includes a voter-approved property tax levy that is not approved for imposition in the budget year, or a decreased rate thereof, the maximum aggregate amount of property tax dollars for the governmental entity under paragraph “a” for the budget year shall be reduced by the amount of the voter-approved property tax levy or voter-approved rate decrease, as applicable, for the current fiscal year.
   c.  The amount of property tax dollars calculated under this section includes those amounts budgeted by the governmental entity as replacement taxes under chapter 437A or 437B, if applicable.
   3.  For purposes of this section, if the governmental entity’s taxes for a property tax levy were not certified back by the department of management under section 24.17 for the current fiscal year due to an act or omission of the governmental entity, the current fiscal year’s property tax dollars certified for levy for that property tax levy shall be equal to the amount certified for levy for the fiscal year immediately preceding the current fiscal year.
   4.  If a governmental entity certifies a budget that violates this section, the department of management shall reduce each of the applicable governmental entity’s property tax levies on a pro rata basis so that the governmental entity is in compliance with this section.
   5.  This section shall not be construed as removing or otherwise affecting property tax limitations, including levy rate limitations expressed as a specific amount of money due per an amount of value and use limitations, otherwise provided by law for any property tax levy of the governmental entity.
   Sec. 7.  NEW SECTION.  444.26  Use of bonds and indebtedness for general operations —— prohibition.
   1.  For purposes of this section:
   a.  “General operations” means services or activities generally funded from the governmental entity’s general fund, which are necessary for the operation of the governmental entity, including salaries and benefits, or which are for the health and welfare of the governmental entity’s citizens or primarily intended to benefit all residents of the governmental entity, but excluding direct and indirect capital expenditures properly allocable under the Internal Revenue Code, as defined in section 422.3, if the governmental entity were a taxpayer, capital leases, and services financed by statutory funds other than a debt service fund.
   b.  “Governmental entity” means any unit of government or other public body or public corporation, including any intergovernmental entity, that has the power to impose or certify a property tax levy.
   2.  On or after July 1, 2026, the governing body of a governmental entity shall not issue bonds or other indebtedness payable from an ad valorem property tax levy for the purpose of funding the general operations of the governmental entity or otherwise use proceeds from the sale of bonds or issuance of other indebtedness to fund general operations.
   3.  The department of management, following consultation with the city finance committee and the county finance committee, may adopt rules under chapter 17A for governmental entities to implement this section.
DIVISION II
COMMERCIAL AND INDUSTRIAL PROPERTY —— TAXPAYER RELIEF FUND APPROPRIATION

   Sec. 8.  Section 8.57E, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  For each fiscal year beginning on or after July 1, 2027, there is appropriated from the general fund of the state to the taxpayer relief fund the sum of one hundred twenty-five million dollars.
   Sec. 9.  Section 441.21, subsection 5, paragraph e, subparagraphs (1), (2), and (3), Code 2026, are amended to read as follows:
   (1)  For the fiscal year beginning July 1, 2023, there is appropriated from the general fund of the state to the department of revenue the sum of one hundred twenty-two million three hundred fifty thousand dollars to be used for payments under this paragraph calculated as a result of the assessment limitations imposed under paragraph “b”, subparagraph (2), subparagraph division (a), and paragraph “c”, subparagraph (2), subparagraph division (a). For each fiscal year beginning on or after July 1, 2024, but before July 1, 2027, there is appropriated from the general fund of the state to the department of revenue the sum of one hundred twenty-five million dollars to be used for payments under this paragraph calculated as a result of the assessment limitations imposed under paragraph “b”, subparagraph (2), subparagraph division (a), and paragraph “c”, subparagraph (2), subparagraph division (a). 
   (2)  For fiscal years beginning on or after July 1, 2023, but before July 1, 2027, each county treasurer shall be paid by the department of revenue an amount calculated under subparagraph (4) for the applicable fiscal year. If an amount appropriated for the fiscal year is insufficient to make all payments as calculated under subparagraph (4), the director of revenue shall prorate the payments to the county treasurers and shall notify the county auditors of the pro rata percentage on or before September 30. 
   (3)  On or before July 1 of each applicable fiscal year, the assessor shall report to the county auditor that portion of the total actual value of all commercial property and industrial property in the county that is subject to the assessment limitations imposed under paragraph “b”, subparagraph (2), subparagraph division (a), and paragraph “c”, subparagraph (2), subparagraph division (a), for the assessment year used to calculate the taxes due and payable in that fiscal year.
   Sec. 10.  Section 441.21, subsection 5, paragraph e, subparagraph (4), unnumbered paragraph 1, Code 2026, is amended to read as follows:
   On or before September 1 of each applicable fiscal year, the county auditor shall prepare a statement, based on the report received in subparagraph (3) and information transmitted to the county auditor under chapter 434, listing for each taxing district in the county:
DIVISION III
SCHOOL TAXES

   Sec. 11.  Section 257.3, subsection 1, paragraph a, Code 2026, is amended to read as follows:
   a.  (1)  Except as provided in subsections 2 and 3, a school district shall cause to be levied each budget year beginning before July 1, 2027, for the school general fund, a foundation property tax equal to five dollars and forty cents per thousand dollars of assessed valuation on all taxable property in the district. The county auditor shall spread the foundation levy over all taxable property in the district.
   (2)  Except as provided in subsections 2 and 3, a school district shall cause to be levied for the budget year beginning July 1, 2027, and each succeeding budget year, for the school general fund, a foundation property tax equal to five dollars per thousand dollars of assessed valuation on all taxable property in the district. The county auditor shall spread the foundation levy over all taxable property in the district.
   Sec. 12.  Section 257.3, subsection 2, paragraphs a and b, Code 2026, are amended to read as follows:
   a.  Notwithstanding subsection 1, a reorganized school district for which the reorganization takes effect on or after July 1, 2027, shall cause a foundation property tax of four dollars and forty cents per thousand dollars of assessed valuation to be levied on all taxable property which, in the year preceding a reorganization, was within a school district affected by the reorganization as defined in section 275.1, or in the year preceding a dissolution was a part of a school district that dissolved if the dissolution proposal has been approved by the director of the department of education pursuant to section 275.55.
   b.  In For a reorganized school district for which the reorganization took effect on or after July 1, 2027, in succeeding school years, the foundation property tax levy on that portion shall be increased to the rate of four dollars and ninety fifty cents per thousand dollars of assessed valuation the first succeeding year, five four dollars and fifteen seventy-five cents per thousand dollars of assessed valuation the second succeeding year, and five dollars and forty cents per thousand dollars of assessed valuation the third succeeding year and each year thereafter under subsection 1, paragraph “a”.
   Sec. 13.  Section 425A.3, subsection 1, Code 2026, is amended to read as follows:
   1.  The family farm tax credit fund shall be apportioned each year in the manner provided in this chapter so as to give a credit against the tax on each eligible tract of agricultural land within the several school districts of the state in which the levy for the general school fund exceeds five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”. The amount of the credit on each eligible tract of agricultural land shall be the amount the tax levied for the general school fund exceeds the amount of tax which would be levied on each eligible tract of agricultural land were the levy for the general school fund five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, for the previous year. However, in the case of a deficiency in the family farm tax credit fund to pay the credits in full, the credit on each eligible tract of agricultural land in the state shall be proportionate and applied as provided in this chapter.
   Sec. 14.  Section 425A.5, Code 2026, is amended to read as follows:
   425A.5  Computation by county auditor.
   The family farm tax credit allowed each year shall be computed as follows:  On or before April 1, the county auditor shall list by school districts all tracts of agricultural land which are entitled to credit, the taxable value for the previous year, the budget from each school district for the previous year, and the tax rate determined for the general fund of the school district in the manner prescribed in section 444.3 for the previous year, and if the tax rate is in excess of five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, the auditor shall multiply the tax levy which is in excess of five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, by the total taxable value of the agricultural land entitled to credit in the school district, and on or before April 1, certify the total amount of credit and the total number of acres entitled to the credit to the department of revenue.
   Sec. 15.  Section 426.3, Code 2026, is amended to read as follows:
   426.3  Where credit given.
   The agricultural land credit fund shall be apportioned each year in the manner hereinafter provided so as to give a credit against the tax on each tract of agricultural lands within the several school districts of the state in which the levy for the general school fund exceeds five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”; the amount of such credit on each tract of such lands shall be the amount the tax levied for the general school fund exceeds the amount of tax which would be levied on said tract of such lands were the levy for the general school fund five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, for the previous year, except in the case of a deficiency in the agricultural land credit fund to pay said credits in full, in which case the credit on each eligible tract of such lands in the state shall be proportionate and shall be applied as hereinafter provided.
   Sec. 16.  Section 426.6, subsection 1, Code 2026, is amended to read as follows:
   1.  The agricultural land tax credit allowed each year shall be computed as follows:  On or before April 1, the county auditor shall list by school districts all tracts of agricultural lands which are entitled to credit, together with the taxable value for the previous year, together with the budget from each school district for the previous year, and the tax rate determined for the general fund of the district in the manner prescribed in section 444.3 for the previous year, and if such tax rate is in excess of five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, the auditor shall multiply the tax levy which is in excess of five dollars and forty cents per thousand dollars of assessed value the levy rate under section 257.3, subsection 1, paragraph “a”, by the total taxable value of the agricultural lands entitled to credit in the district, and on or before April 1, certify the amount to the department of revenue.
   Sec. 17.  ADJUSTMENT OF CALCULATIONS.  For property tax credits under chapters 425A and 426 for property taxes due and payable in the fiscal year beginning July 1, 2027, the tax rate determined for the general fund of the school district in the manner prescribed in section 444.3 for the previous year shall be determined using the appropriate property tax levy rate under section 257.3, as amended in this division of this Act.
   Sec. 18.  APPLICABILITY.  This division of this Act applies to fiscal years and school budget years beginning on or after July 1, 2027.
DIVISION IV
SECURE AN ADVANCED VISION FOR EDUCATION FUND —— EQUITY TRANSFER PERCENTAGE —— FUTURE REPEAL

   Sec. 19.  Section 423.2, subsection 12, Code 2026, is amended to read as follows:
   12.  The sales tax rate of six percent is reduced to five percent on January 1, 2051 2071.
   Sec. 20.  Section 423.2A, subsection 2, paragraph c, Code 2026, is amended to read as follows:
   c.  Transfer one-sixth of the remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This paragraph “c” is repealed January 1, 2051 2071.
   Sec. 21.  Section 423.5, subsection 4, Code 2026, is amended to read as follows:
   4.  The use tax rate of six percent is reduced to five percent on January 1, 2051 2071.
   Sec. 22.  Section 423.43, subsection 1, paragraph b, Code 2026, is amended to read as follows:
   b.  Subsequent to the deposit into the general fund of the state and after the transfer of such revenues collected under chapter 423B, the department shall transfer one-sixth of such remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This paragraph is repealed January 1, 2051 2071.
   Sec. 23.  Section 423F.2, subsection 3, paragraph b, subparagraph (2), subparagraph division (b), Code 2026, is amended to read as follows:
   (b)  For each fiscal year beginning on or after July 1, 2020, but before July 1, 2026, the equity transfer percentage is equal to the equity transfer percentage for the immediately preceding fiscal year, unless the amount of moneys available in the secure an advanced vision for education fund in the immediately preceding fiscal year equals or exceeds one hundred two percent of the amount of moneys available in the fund for the fiscal year prior to the immediately preceding fiscal year, in which case the equity transfer percentage shall be the equity transfer percentage for the immediately preceding fiscal year plus one percent subject to the limitation in subparagraph division (c).
   Sec. 24.  Section 423F.2, subsection 3, paragraph b, subparagraph (2), subparagraph division (c), Code 2026, is amended by striking the subparagraph division and inserting in lieu thereof the following:
   (c)  (i)  For the fiscal year beginning July 1, 2026, the equity transfer percentage is twelve and one-half percent.
   (ii)  For the fiscal year beginning July 1, 2027, the equity transfer percentage is fifteen percent.
   (iii)  For the fiscal year beginning July 1, 2028, the equity transfer percentage is seventeen and one-half percent.
   (iv)  For the fiscal year beginning July 1, 2029, the equity transfer percentage is twenty-two and one-half percent.
   (v)  For the fiscal year beginning July 1, 2030, and each fiscal year thereafter, the equity transfer percentage is twenty-five percent.
   Sec. 25.  Section 423F.6, Code 2026, is amended to read as follows:
   423F.6  Repeal.
   This chapter is repealed January 1, 2051 2071.
   Sec. 26.  SCHOOL DISTRICT FUNDING RECONCILIATION.  

For amounts allocated under section 423F.2 for fiscal years beginning on or after July 1, 2026, the department of management shall adjust or reconcile actual amounts to be received by school districts in the fiscal year immediately following the fiscal year during which the revenues were collected.
DIVISION V
PROPERTY PARCEL INFORMATION

   Sec. 27.  Section 331.510, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  a.  An annual report not later than January 1 to the department of management containing parcel-level property data, including parcel identification information, location, size, valuation, classification, types of structures and improvements, exemptions, credits, historical amounts of property taxes due and payable, and whether the parcel is subject to a division of revenue.
   b.  In addition to the information required under paragraph “a”, the department of management may require additional parcel-level data deemed necessary by the director of the department of management. The department shall prescribe the form and manner of submitting the annual report under this subsection.
   c.  The department of management shall establish and manage a searchable internet-based dashboard that contains the information collected under paragraphs “a” and “b”, as well as individual parcel information tax information provided as part of the statements required under section 24.2A, subsection 2, paragraph “b”.
DIVISION VI
URBAN RENEWAL

   Sec. 28.  Section 15A.1, subsection 1, paragraph b, Code 2026, is amended to read as follows:
   b.  For purposes of this chapter, “economic development” means private or joint public and private investment involving the creation of new jobs and income or the retention of existing jobs and income that would otherwise be lost or the provision of workforce housing.
   Sec. 29.  Section 15A.1, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  Development policies that advance the development of workforce housing.
   Sec. 30.  Section 331.403, subsection 3, paragraph b, subparagraph (19), Code 2026, is amended by striking the subparagraph.
   Sec. 31.  Section 384.22, subsection 2, paragraph b, subparagraph (19), Code 2026, is amended by striking the subparagraph.
   Sec. 32.  Section 403.17, subsection 10, Code 2026, is amended to read as follows:
   10.  “Economic development area” means an area of a municipality designated by the local governing body as appropriate for commercial and industrial enterprises, public improvements related to housing and residential development, or construction of housing and residential development for low and moderate income families, including single or multifamily housing. If an urban renewal plan for an urban renewal area is based upon a finding that the area is an economic development area and that no part contains slum or blighted conditions, then the division of revenue provided in section 403.19 and stated in the plan shall be limited to twenty years from the calendar year following the calendar year in which the municipality first certifies to the county auditor the amount of any loans, advances, indebtedness, or bonds which qualify for payment from the division of revenue provided in section 403.19. Such designated area shall not include agricultural land, including land which is part of a century farm, unless the owner of the agricultural land or century farm agrees to include the agricultural land or century farm in the urban renewal area. For the purposes of this subsection, “century farm” means a farm in which at least forty acres of such farm have been held in continuous ownership by the same family for one hundred years or more.
   Sec. 33.  Section 403.17, subsection 14, Code 2026, is amended to read as follows:
   14.  “Low or and moderate income families” means those families, including single person households, earning no more than eighty percent of the higher of the median family income of the county or the statewide nonmetropolitan area as determined by the latest United States department of housing and urban development, section 8 income guidelines.
   Sec. 34.  Section 403.17, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  14A.  “Low and moderate income family housing” means housing for low and moderate income families and includes housing that meets the requirements of section 15.353.
   Sec. 35.  Section 403.19, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  That portion of the taxes each year in excess of such amount shall be allocated to and when collected be paid into a special fund of the municipality to pay the principal of and interest on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, including bonds issued under the authority of section 403.9, subsection 1, incurred by the municipality to finance or refinance, in whole or in part, an urban renewal project within the area, and to provide assistance for low and moderate income family housing as provided in section 403.22. However, except as provided in paragraph “b”, taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to section 298.2;and taxes for the instructional support program of a school district imposed pursuant to section 257.19,; taxes for the payment of bonds and interest of each taxing district,; foundation property taxes of a school district imposed under section 257.3 levied against property located in an incorporated area and subject to an ordinance providing for a division of revenue adopted on or after January 1, 2027; taxes for emergency medical services imposed pursuant to chapter 357F, 357G, or 422D; and taxes imposed under section 346.27, subsection 22, related to joint county-city buildings shall be collected against all taxable property within the taxing district without limitation by the provisions of this subsection.
   Sec. 36.  Section 403.19, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  For urban renewal areas for which an ordinance providing for a division of revenue is not limited in duration under section 403.17, subsection 10, after twenty years following the effective date of this division of this Act or after twenty years from the calendar year following the calendar year in which the municipality first certifies to the county auditor the amount of any loans, advances, indebtedness, or bonds which qualify for payment from the division of revenue, whichever is later, the amount determined under paragraph “a” that may be paid into the municipality’s special fund shall not exceed sixty percent of the amount otherwise determined under paragraph “a” but for this paragraph and such excess amounts shall be allocated and paid to the respective taxing districts in the same manner as amounts under subsection 1. The municipality may exceed the limitation in this paragraph to the extent necessary for payments of bonds or other indebtedness incurred before the effective date of this division of this Act, but in such event the municipality shall not issue bonds or other indebtedness payable from such division of revenue while exceeding the limitation. This paragraph shall not apply to divisions of revenue established by community colleges under chapter 260E or rural improvement zones under chapter 357H.
   Sec. 37.  Section 403.19, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  An ordinance providing for a division of revenue under this section that is adopted on or after the effective date of this division of this Act shall be limited to twenty-three years from the calendar year following the calendar year in which the municipality first certifies to the county auditor the amount of any loans, advances, indebtedness, or bonds that qualify for payment from the division of revenue provided for in this section. The ordinance shall terminate and be of no further force and effect following the twenty-three-year period provided in this subsection. This subsection shall not apply to divisions of revenue established by community colleges under chapter 260E or rural improvement zones under chapter 357H.
   Sec. 38.  Section 403.19, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  12.  For any fiscal year beginning on or after July 1, 2027, following written request filed with the county auditor and the board of directors of the school district, a school district may approve by resolution of the board of directors the payment from the school district’s general fund to the municipality for deposit in the special fund under this section all or a portion of the school district foundation property taxes under section 257.3 levied against property located in an incorporated area and subject to an ordinance providing for a division of revenue adopted on or after January 1, 2027, for one or more applicable fiscal years. If approved, the board of directors shall file such resolution with the county auditor. Payments approved under this subsection are voluntary and a school district is not required to pay over the revenue to the municipality unless approved by resolution. Amounts paid by a school district under this subsection shall continue to be considered foundation property taxes levied under section 257.3 and such payment shall not result in the adjustment of state foundation aid or other amounts under chapter 257.
   Sec. 39.  REPEAL.  Section 403.22, Code 2026, is repealed.
   Sec. 40.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
   Sec. 41.  APPLICABILITY.  The following applies to property taxes due and payable in fiscal years beginning on or after July 1, 2027:
   The portion of the section of this division of this Act excluding taxes for emergency medical services imposed pursuant to chapter 357F, 357G, or 422D from divisions of revenue by amending section 403.19, subsection 2, paragraph “a”.
   Sec. 42.  APPLICABILITY.  The following applies to property taxes due and payable in fiscal years beginning on or after July 1, 2028:
   The portion of the section of this division of this Act excluding taxes under section 257.3 from divisions of revenue by amending section 403.19, subsection 2, paragraph “a”.
   Sec. 43.  APPLICABILITY.  The following applies to urban renewal areas in existence on or established on or after the effective date of this division of this Act:
   The section of this division of this Act repealing section 403.22.
DIVISION VII
ASSESSMENT PROCEDURES

   Sec. 44.  Section 441.21, subsection 3, Code 2026, is amended to read as follows:
   3.  a.  “Actual value”, “taxable value”, or “assessed value” as used in other sections of the Code in relation to assessment of property for taxation shall mean the valuations as determined by this section; however, other provisions of the Code providing special methods or formulas for assessing or valuing specified property shall remain in effect, but this section shall be applicable to the extent consistent with such provisions. The assessor and department of revenue shall disclose at the written request of the taxpayer all information in any formula or method used to determine the actual value of the taxpayer’s property.  In addition, for assessment years beginning on or after January 1, 2027, if the taxpayer’s property has increased in actual value by ten percent or more from the immediately preceding assessment year, the assessor shall provide the taxpayer with a statement of the reasons for the increase in actual value, information specifying the portion of actual value increase attributable to a change in classification, revaluation, new construction, improvements, or renovations to the property, and all information in any formula or method used to determine the actual value.
   b.  (1)  For assessment years beginning before January 1, 2018, the burden of proof shall be upon any complainant attacking such valuation as excessive, inadequate, inequitable, or capricious. However, in protest or appeal proceedings when the complainant offers competent evidence by at least two disinterested witnesses that the market value of the property is less than the market value determined by the assessor, the burden of proof thereafter shall be upon the officials or persons seeking to uphold such valuation to be assessed.
   (2)  (1)  For assessment years beginning on or after January 1, 2018, the Except as provided in subparagraph (3), the burden of proof shall be upon any complainant attacking such valuation as excessive, inadequate, inequitable, or capricious. However, in protest or appeal proceedings when the complainant offers competent evidence that the market value of the property is different than the market value determined by the assessor, the burden of proof thereafter shall be upon the officials or persons seeking to uphold such valuation to be assessed.
   (3)  (2)  If the classification of a property has been previously adjudicated by the property assessment appeal board or a court as part of an appeal under this chapter, there is a presumption that the classification of the property has not changed for each of the four subsequent assessment years, unless a subsequent such adjudication of the classification of the property has occurred, and the burden of demonstrating a change in use shall be upon the person asserting a change to the property’s classification.
   (3)  For assessment years beginning on or after January 1, 2027, if the taxpayer’s property actual value increased by ten percent or more from the immediately preceding assessment year, including an increase as the result of an equalization order, and the property did not change classification or primary use and the increase in actual value is not the result of new construction, improvements, or renovations to the property, the actual value so determined by the assessor is not presumed to be the actual value and in any protest or appeal the assessor shall have the burden of proof that the valuation is not excessive, inadequate, inequitable, or capricious.
   Sec. 45.  Section 441.33, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  Ex parte communications with board of review members are prohibited in protests before the board.
DIVISION VIII
LOCAL GOVERNMENT EFFICIENCY GRANT PROGRAM

   Sec. 46.  NEW SECTION.  28E.20  Local government efficiency grant program.
   1.  A local government efficiency grant fund is created and established as a separate and distinct fund in the state treasury under the control of the Iowa economic development authority. For purposes of this section, “local government” means a county, city, township, or any special-purpose district or authority.
   2.  a.  There is appropriated from the general fund of the state to the local government efficiency grant fund for the fiscal year beginning July 1, 2026, and ending July 1, 2027, ten million dollars. In addition to moneys deposited in the local government efficiency grant fund pursuant to appropriations made by the general assembly, the Iowa economic development authority or the commission established under paragraph “c” may accept gifts, grants, bequests, and other private contributions, as well as state or federal funds, and shall deposit the moneys in the fund to be used for purposes of this section. Moneys in the fund are appropriated to the Iowa economic development authority and shall be used only, after commission approval, to provide grants to local governments to assist in efforts to increase government efficiency, including but not limited to efforts to consolidate government positions and pursue agreements with other local governments to share services and reduce the use of property tax revenues for such shared services. Grant funds may be used by the local government for costs to implement efficiency initiatives including but not limited to service-sharing or service-consolidation initiatives and transitional or temporary costs of eliminating services.
   b.  Notwithstanding section 8.33, moneys in the fund that remain unawarded at the close of the fiscal year shall not revert but shall remain in the fund for expenditure in succeeding fiscal years. Notwithstanding section 12C.7, subsection 2, interest earned on moneys in the local government efficiency grant fund shall be credited to the fund.
   c.  A local government efficiency commission shall be established within the Iowa economic development authority comprised of not more than ten individuals appointed by the director of the economic development authority who have experience in local government operations and budgeting, local government planning, and cooperative extension services. The local government efficiency commission shall review and approve or deny each grant application.
   3.  The local government efficiency commission shall establish and administer the grant program to provide for the allocation of moneys in the fund in the form of competitive grants to local governments in accordance with the purposes and objectives of this section. The rules for the program adopted by the commission shall specify the eligibility of applicants, eligible services and items for grant funding, the electronic application process, and the maximum award per grant. 
DIVISION IX
FIRSTHOME IOWA ACCOUNTS

   Sec. 47.  Section 12G.2, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  Create strategies for coordination of the program with the FirstHome Iowa program trust established in chapter 12L.
   Sec. 48.  NEW SECTION.  12L.1  FirstHome Iowa program —— purpose and definitions.
   1.  The general assembly finds that the general welfare and well-being of the state are directly related to homeownership of the citizens of the state, and that a vital and valid public purpose is served by the creation and implementation of programs which encourage and make possible the attainment of homeownership by the greatest number of citizens of the state. The general welfare of the citizens of the state will be enhanced by establishing a FirstHome Iowa program which allows citizens of the state to invest money in a public trust for future application to the payment of qualified homebuyer expenses. The creation of the means of encouragement for citizens to invest in such a program represents the carrying out of a vital and valid public purpose. In order to make available to the citizens of the state an opportunity to fund future first-time homeownership, it is necessary that a public trust be established in which moneys may be invested for future use.
   2.  As used in this chapter, unless the context otherwise requires:
   a.  “Administrative fund” means the administrative fund established under section 12L.4.
   b.  “Beneficiary” means the individual designated by a participation agreement to benefit from advance payments of qualified homebuyer expenses on behalf of the beneficiary.
   c.  “First-time homebuyer” means an individual who is a resident of Iowa and who does not own, either individually or jointly, a single-family or multifamily residence, and who has not owned or purchased, either individually or jointly, a single-family or multifamily residence for a period of three years prior to the date of the qualified purchase for which the eligible home costs are paid or reimbursed from an account.
   d.  “FirstHome Iowa program trust” or “trust” means the trust created under section 12L.2. 
   e.  “FirstHome Iowa program trust account” or “account” means an account within the trust that was established for the purpose of paying or reimbursing a beneficiary’s eligible qualified homebuyer expenses in connection with a qualified purchase.
   f.  “Individual” means a natural person.
   g.  “Participant” means an individual, individual’s legal representative, trust, or estate that has entered into a participation agreement under this chapter, either individually or jointly with the individual’s spouse, for the advance payment of qualified homebuyer expenses on behalf of a beneficiary.
   h.  “Participation agreement” means an agreement between a participant and the trust entered into under this chapter.
   i.  “Program fund” means the program fund established under section 12L.4.
   j.  “Qualified homebuyer expenses” means any of the following:
   (1)  A down payment or closing costs for the qualified purchase of a single-family residence in Iowa that is the principal residence of the beneficiary if such beneficiary is a first-time homebuyer with respect to such purchase.
   (2)  A cost, fee, tax, or payment incurred by, or charged or assigned to, a beneficiary as part of the purchase under subparagraph (1) and listed on the statement of receipts and disbursements for the sale, including any statement prescribed by 12 C.F.R. §1026.38, as amended.
   (3)  Any United States veterans administration funding fee incurred by, or charged or assigned to, a beneficiary in connection with a veterans administration home loan guaranty program.
   k.  “Qualified purchase” means the purchase of a single-family residence in Iowa by the account’s beneficiary ninety or more days after the date the participant first opened the account.
   l.  “Resident” means the same as defined in section 422.4.
   m.  “Single-family residence” means a single-family residence owned and occupied by a beneficiary as the beneficiary’s principal residence, including but not limited to a manufactured home, mobile home, condominium unit, or cooperative.
   Sec. 49.  NEW SECTION.  12L.2  Creation of FirstHome Iowa program trust.
   A FirstHome Iowa program trust is created. The treasurer of state is the trustee of the trust, and has all powers necessary to carry out and effectuate the purposes, objectives, and provisions of this chapter pertaining to the trust, including the power to do all of the following:
   1.  Make and enter into contracts necessary for the administration of the trust created under this chapter.
   2.  Enter into agreements with any financial institution, the state, or any federal or other state agency, or other entity as required to implement this chapter.
   3.  Carry out the duties and obligations of the trust pursuant to this chapter.
   4.  Accept any grants, gifts, legislative appropriations, and other moneys from the state, any unit of federal, state, or local government, or any other person, firm, partnership, or corporation which the treasurer of state shall deposit into the administrative fund or the program fund.
   5.  Carry out studies and projections so the treasurer of state may advise participants regarding present and estimated future qualified homebuyer expenses and levels of financial participation in the trust required in order to enable participants to achieve their qualifying purchase objectives.
   6.  Participate in any federal, state, or local governmental program for the benefit of the trust.
   7.  Procure insurance against any loss in connection with the property, assets, or activities of the trust.
   8.  Enter into participation agreements with participants.
   9.  Make payments to or on behalf of beneficiaries for qualified homebuyer expenses pursuant to participation agreements.
   10.  Make refunds to participants upon the termination of participation agreements, and partial nonqualified distributions to participants, pursuant to the provisions, limitations, and restrictions set forth in this chapter.
   11.  Invest moneys from the program fund in any investments which are determined by the treasurer of state to be appropriate.
   12.  Engage investment advisors, if necessary, to assist in the investment of trust assets.
   13.  Contract for goods and services and engage personnel as necessary, including consultants, actuaries, managers, legal counsel, and auditors for the purpose of rendering professional, managerial, and technical assistance and advice to the treasurer of state regarding trust administration and operation.
   14.  Establish, impose, and collect administrative fees and charges in connection with transactions of the trust for deposit in the administrative fund and provide for reasonable service charges.
   15.  Administer the funds of the trust.
   16.  Adopt rules pursuant to chapter 17A for the administration of the trust.
   Sec. 50.  NEW SECTION.  12L.3  Participation agreements for trust.
   The trust may enter into participation agreements with participants on behalf of beneficiaries pursuant to the following terms and agreements:
   1.  Each participation agreement may require a participant to agree to invest a specific amount of money in the trust for a specific period of time for the benefit of a specific beneficiary. A participant shall not be required to make an annual contribution on behalf of a beneficiary. The maximum contribution that may be deducted for Iowa income tax purposes shall be the amount contributed by the participant during the applicable tax year, not to exceed five thousand five hundred dollars per beneficiary per year adjusted annually to reflect increases in the consumer price index.
   2.  The execution of a participation agreement by the trust shall not guarantee in any way that qualified homebuyer expenses will be equal to projections and estimates provided by the trust or that the beneficiary named in any participation agreement will qualify for a mortgage, home loan, or other forms of credit for a qualified purchase.
   3.  a.  A beneficiary under a participation agreement may be changed as permitted under rules adopted by the treasurer of state upon written request of the participant as long as the substitute beneficiary is eligible for participation.
   b.  Participation agreements may otherwise be freely amended throughout their terms in order to enable participants to increase or decrease the level of participation, change the designation of beneficiaries, and carry out similar matters as authorized by rule.
   4.  Each participation agreement shall provide that the participation agreement may be canceled upon the terms and conditions, and upon payment of applicable fees and costs set forth and contained in the rules adopted by the treasurer of state.
   5.  A participant may designate a successor in accordance with rules adopted by the treasurer of state. The designated successor shall succeed to the ownership of the account in the event of the death of the participant. In the event a participant dies and has not designated a successor to the account, the following criteria shall apply:
   a.  The beneficiary of the account, if eighteen years of age or older, shall become the owner of the account as well as remain the beneficiary upon filing the appropriate forms in accordance with rules adopted by the treasurer of state.
   b.  If the beneficiary of the account is under the age of eighteen, account ownership shall be transferred to the first surviving parent or other legal guardian of the beneficiary to file the appropriate forms in accordance with rules adopted by the treasurer of state.
   Sec. 51.  NEW SECTION.  12L.4  FirstHome Iowa program and administrative funds —— investment and payments.
   1.  a.  The treasurer of state shall segregate moneys received by the trust into two funds: the FirstHome Iowa program fund and the administrative fund to be used for administration of the program.
   b.  All moneys paid by participants in connection with participation agreements shall be deposited as received into separate accounts within the program fund.
   c.  Contributions to the trust made by participants may only be made in the form of cash.
   d.  A participant or beneficiary may, directly or indirectly, direct the investment of any contributions to the trust or any earnings thereon no more than four times in a calendar year.
   2.  Moneys accrued by participants in the program fund of the trust may be used for payments to or on behalf of a beneficiary for qualified homebuyer expenses.
   Sec. 52.  NEW SECTION.  12L.5  Cancellation of agreements.
   A participant may cancel a participation agreement at will. Upon cancellation of a participation agreement, a participant shall be entitled to the return of the participant’s account balance.
   Sec. 53.  NEW SECTION.  12L.6  Ownership of payments and investment income —— transfer of ownership rights.
   1.  a.  A participant retains ownership of all payments made under a participation agreement up to the date of utilization for payment of qualified homebuyer expenses for the beneficiary.
   b.  All income derived from the investment of the payments made by the participant shall be considered to be held in trust for the benefit of the beneficiary.
   2.  In the event the FirstHome Iowa program is terminated prior to payment of qualified homebuyer expenses for the beneficiary, the participant is entitled to a refund of the participant’s account balance.
   3.  Any amounts which may be paid to any person or persons pursuant to the FirstHome Iowa program trust but which are not listed in this section are owned by the trust.
   4.  A participant may transfer ownership rights to another participant or may transfer funds to another account under the trust. The transfer shall be made and the property distributed in accordance with rules adopted by the treasurer of state or with the terms of the participation agreement.
   5.  A participant shall not be entitled to utilize any interest in the trust as security for a loan.
   Sec. 54.  NEW SECTION.  12L.7  Annual audited financial report to governor and general assembly.
   1.  a.  The treasurer of state shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the trust by November 1 to the governor and the general assembly.
   b.  The annual audit shall be made either by the auditor of state or by an independent certified public accountant designated by the auditor of state and shall include direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.
   2.  The annual audit shall be supplemented by all of the following information prepared by the treasurer of state:
   a.  Any related studies or evaluations prepared in the preceding year.
   b.  A summary of the benefits provided by the trust including the number of participants and beneficiaries in the trust.
   c.  Any other information which is relevant in order to make a full, fair, and effective disclosure of the operations of the trust.
   Sec. 55.  NEW SECTION.  12L.8  Tax considerations.
   State income tax treatment of the FirstHome Iowa program trust shall be as provided in section 422.7, subsections 46 and 47.
   Sec. 56.  NEW SECTION.  12L.9  Property rights to assets in trust.
   1.  The assets of the trust shall at all times be preserved, invested, and expended solely and only for the purposes of the trust and shall be held in trust for the participants and beneficiaries.
   2.  No property rights in the trust shall exist in favor of the state.
   3.  The assets of the trust shall not be transferred or used by the state for any purposes other than the purposes of the trust.
   Sec. 57.  NEW SECTION.  12L.10  Construction.
   This chapter shall be construed liberally in order to effectuate its purpose.
   Sec. 58.  Section 232D.503, subsection 6, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  A FirstHome Iowa program trust account established for the minor pursuant to chapter 12L.
   Sec. 59.  Section 422.7, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  46.  a.  Subtract the contribution that may be deducted for Iowa income tax purposes as a participant in the FirstHome Iowa program trust pursuant to section 12L.3, subsection 1. For purposes of this paragraph, a participant who makes a contribution on or before the date prescribed in section 422.21 for making and filing an individual income tax return, excluding extensions, or the date for making and filing an individual income tax return determined by the director pursuant to an order issued under section 421.17, subsection 30, may elect to be deemed to have made the contribution on the last day of the preceding calendar year. The director, after consultation with the treasurer of state, shall prescribe by rule the manner and method by which a participant may make an election authorized by the preceding sentence.
   b.  Add the amount resulting from the cancellation of a participation agreement refunded to the taxpayer as a participant in the FirstHome Iowa program trust to the extent previously deducted as a contribution to the trust.
   c.  Add, to the extent previously deducted as a contribution to the trust, the amount resulting from a withdrawal or transfer made by the taxpayer from the FirstHome Iowa program trust for purposes other than the payment of qualified homebuyer expenses.
   NEW SUBSECTION.  47.  Subtract, to the extent included, income from interest and earnings received from the FirstHome Iowa program trust created in chapter 12L.
   Sec. 60.  Section 541B.4, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  5.  Withdrawal for deposit into FirstHome Iowa program trust account.  First-time homebuyer account balances under this chapter may be withdrawn without penalty or taxation in this state if such withdrawal is deposited in an account within the FirstHome Iowa program trust under chapter 12L within thirty days of the withdrawal. The treasurer of state may by rule provide for the direct transfer of moneys within an account under this chapter to a FirstHome Iowa program trust account and such transfer shall not be subject to penalty or taxation in this state.
   NEW SUBSECTION.  6.  No new accounts.  New accounts shall not be established under this chapter on or after July 1, 2026.
   Sec. 61.  Section 627.6, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  18.  The debtor’s interest, whether as participant or beneficiary, in contributions and assets, including the accumulated earnings and market increases in value, held in an account in the FirstHome Iowa program trust organized under chapter 12L.
   Sec. 62.  Section 633.108, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  A FirstHome Iowa program trust account established for the minor pursuant to chapter 12L.
   Sec. 63.  Section 633.555, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  f.  An account owner or participant under a FirstHome Iowa program trust account established for the protected person pursuant to chapter 12L.
   Sec. 64.  Section 633.678, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  f.  An account owner or participant under a FirstHome Iowa program trust account established for the protected person pursuant to chapter 12L.
   Sec. 65.  Section 633.681, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  An account owner or participant under a FirstHome Iowa program trust account established for the protected person pursuant to chapter 12L.
   Sec. 66.  APPLICABILITY.  The following applies to contributions made under chapter 12L on or after July 1, 2026, for tax years ending on or after that date: 
   The section of this division of this Act enacting section 422.7, subsections 46 and 47.
DIVISION X
VALUATIONS —— ABNORMAL TRANSACTIONS —— REAL ESTATE TRANSFER TAX FORMS

   Sec. 67.  Section 428A.7, Code 2026, is amended to read as follows:
   428A.7  Forms provided by director of revenue.
   The director of revenue shall prescribe the form of the declaration of value and shall include an appropriate place for the inclusion of special facts and circumstances relating to the actual sales price in real estate transfers including but not limited to factors that distort market value such as built-to-suit sales, sale-leaseback sales, leased fee sales, and the abnormal transactions identified in section 441.21, subsection 1, paragraph “b”, subparagraph (1). The director shall provide an adequate number of the declaration of value forms to each county recorder in the state. If the declaration of value form requires or provides for the inclusion of the social security number or federal tax identification number of a seller or buyer, the department shall provide that the social security number or federal tax identification number remains confidential and cannot be obtained by public examination.
   Sec. 68.  Section 441.21, subsection 1, paragraph b, subparagraph (1), Code 2026, is amended to read as follows:
   (1)  The actual value of all property subject to assessment and taxation shall be the fair and reasonable market value of such property except as otherwise provided in this section. “Market value” is defined as the fair and reasonable exchange in the year in which the property is listed and valued between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and each being familiar with all the facts relating to the particular property. Sale prices of the property or comparable property in normal transactions reflecting market value, and the probable availability or unavailability of persons interested in purchasing the property, shall be taken into consideration in arriving at its market value. In arriving at market value, sale prices of property in abnormal transactions not reflecting market value shall not be taken into account, or shall be adjusted to eliminate the effect of factors which distort market value, including but not limited to built-to-suit construction, sale-leaseback transactions, leased fee sales, sales to immediate family of the seller between related parties, foreclosure or other forced sales, contract sales, discounted purchase transactions or purchase of adjoining land or other land to be operated as a unit.
   Sec. 69.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to assessment years beginning on or after January 1, 2026.
DIVISION XI
LOCAL GOVERNMENT BUDGET STATEMENTS

   Sec. 70.  Section 24.2A, subsection 1, paragraph c, Code 2026, is amended by striking the paragraph.
   Sec. 71.  Section 24.2A, subsection 1, paragraph d, Code 2026, is amended to read as follows:
   d.  “Political subdivision” means a school district, a county, or a city.  In addition, for purposes of the statements required under subsection 2, paragraph “b”, only, all certifying boards that are not a political subdivision shall be considered a single political subdivision and identified under a designation of special taxing districts on such statements.
   Sec. 72.  Section 24.2A, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  On or before 4:00 p.m. on March 5 of each year, each political subdivision certifying board shall file with the department of management a report containing all necessary information for the department of management to compile and calculate amounts required to be included in the statements mailed under paragraph “b” or provided under paragraph “c”. If a county or city certifying board, except a school district, fails to file all necessary information with the department of management by 4:00 p.m. on March 5, taxes levied by the county or city certifying board shall be limited to the prior year’s budget amount.
   Sec. 73.  Section 24.2A, subsection 2, paragraph b, Code 2026, is amended by striking the paragraph and inserting in lieu thereof the following:
   b.  Not later than March 15, the county auditor, using information compiled and calculated by the department of management under paragraph “a”, shall send to each property owner or taxpayer within the county by regular mail or post under paragraph “c” a statement, identified as not being a property tax bill and indicating the approximate date when a property tax bill will be delivered, but containing a minimum of all of the following, including the information in subparagraphs (3), (4), (5), (7), and (8) for each of the political subdivisions comprising the owner’s or taxpayer’s taxing district:
   (1)  The address, property description, parcel identification number, actual value, and taxable value of the owner’s or taxpayer’s property.
   (2)  The classification of the owner’s or taxpayer’s property, including identification of all assessment limitations under section 441.21, and identification of each property tax exemption or credit being received by the owner or taxpayer for the property for the assessment year and the immediately preceding assessment year.
   (3)  The sum of the current fiscal year’s actual property taxes certified for levy for all of the political subdivision’s levies on the owner’s or taxpayer’s property, the percentage that such amount represents of the total taxes due on the property, and the allocation of such amounts to specified categories of the political subdivision’s services and activities.
   (4)  The combined amount of the proposed property tax dollars to be certified for all of the political subdivision’s levies for the budget year on the owner’s or taxpayer’s property, the percentage that such amount represents of the proposed total taxes due on the property, the percentage increase of such amount from the current fiscal year and the potential reasons for any increases, and the allocation of such amounts to specified categories of the political subdivision’s services and activities, including that portion of such amount subject to the limitation under section 444.25.
   (5)  Tax amounts provided under subparagraphs (3) and (4) as a per month amount and a percentage change in the per month amount between the current fiscal year and the budget year.
   (6)  A comparison of the combined amount of property taxes due on the owner’s or taxpayer’s property for all political subdivisions for the current fiscal year and the combined proposed amount of property taxes due on the owner’s or taxpayer’s property for all political subdivisions for the budget year, including the percentage in change in such amounts.
   (7)  The date, time, and location of the political subdivision’s public hearing under subsection 4, including a statement of the owner or taxpayer’s ability to provide feedback at the public hearing and protest property assessments.
   (8)  Information on how to access on the political subdivision’s internet site the political subdivision’s statements under this section and other budget documents for prior fiscal years.
   (9)  A link to the department of management’s internet site where the property owner or taxpayer may view an example of the statement and a brief explanation of the information included on the statement.
   Sec. 74.  Section 24.2A, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  For budgets for fiscal years beginning on or after July 1, 2027, statements under paragraph “b”, in lieu of regular mail, may be provided by posting the statement not later than March 15 on the political subdivision’s internet site for public viewing and shall be maintained on the political subdivision’s internet site with all such prior year statements. Additionally, if the political subdivision maintains a social media account on one or more social media applications, the statement or an electronic link to the statement shall be posted on each such account on a date no later than March 15.
   Sec. 75.  Section 24.2A, subsection 3, Code 2026, is amended to read as follows:
   3.  The department of management shall prescribe the form for the report required under subsection 2, paragraph “a”; following consultation with the Iowa league of cities and the Iowa state association of counties, the statements required to be mailed under subsection 2, paragraph “b”, or provided under subsection 2, paragraph “c”; and the public hearing notice required under subsection 4, paragraph “b”.  The statements required under subsection 2, paragraph “b”, shall be clear, concise, written in plain language, and may be presented using tables, written narrative, and graphic representations and shall contain the internet site, mailing address, and a telephone number for each political subdivision that owners and taxpayers may call if they have questions related to the statement.
   Sec. 76.  Section 24.2A, subsection 4, paragraph b, subparagraph (4), subparagraph division (a), Code 2026, is amended to read as follows:
   (a)  Notice of the public hearing was provided to each property owner and each taxpayer within the political subdivision in statements required under subsection 2, paragraph “b”.
   Sec. 77.  Section 24.3, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   A municipality shall not certify or levy in any fiscal year any tax on property subject to taxation unless and until the following estimates have been made, filed, and considered, and for school districts, the individual statements have been mailed or posted, as applicable, and public hearings held, as provided in this chapter:
   Sec. 78.  Section 331.434, subsection 3, Code 2026, is amended to read as follows:
   3.  Following, and not until, the requirements of section 24.2A are completed, the board shall set a time and place for a public hearing on the budget before the final certification date and shall publish notice of the hearing not less than ten nor more than twenty days prior to the hearing in the county newspapers selected under chapter 349. A summary of the proposed budget and a description of the procedure for protesting the county budget under section 331.436, in the form prescribed by the director of the department of management, shall be included in the notice. Proof of publication of the notice under this subsection 3 shall be filed with and preserved by the county auditor. A levy is not valid unless and until the notice is published and individual statements under section 24.2A are mailed or posted. The department of management shall prescribe the form for the public hearing notice for use by counties.
   Sec. 79.  Section 331.435, subsection 2, Code 2026, is amended to read as follows:
   2.  The board shall prepare and adopt a budget amendment in the same manner as the original budget as provided in section 331.434, but excluding the requirements for mailing individual statements under section 24.2A, and the amendment is subject to protest as provided in section 331.436, except that the director of the department of management may by rule provide that amendments of certain types or up to certain amounts may be made without public hearing and without being subject to protest. A county budget for the ensuing fiscal year shall be amended by May 31 to allow time for a protest hearing to be held and a decision rendered before June 30. An amendment of a budget after May 31 which is properly appealed but without adequate time for hearing and decision before June 30 is void.
   Sec. 80.  Section 384.17, Code 2026, is amended to read as follows:
   384.17  Levy by county.
   At the time required by law, the county board of supervisors shall levy the taxes necessary for each city fund for the following fiscal year. The levy must be as shown in the adopted city budget and as certified by the clerk, subject to any changes made after a protest hearing, and any additional tax rates approved at a city election. A city levy is not valid until proof of publication or posting of notice of a budget hearing under section 384.16, subsection 3, is filed with the county auditor and individual statements are mailed or posted under section 24.2A.
   Sec. 81.  Section 384.18, subsection 2, Code 2026, is amended to read as follows:
   2.  A budget amendment must be prepared and adopted in the same manner as the original budget, as provided in section 384.16, excluding the requirement for the mailing of individual statements under section 24.2A, and is subject to protest as provided in section 384.19, except that the committee may by rule provide that amendments of certain types or up to certain amounts may be made without public hearing and without being subject to protest. A city budget shall be amended by May 31 of the current fiscal year to allow time for a protest hearing to be held and a decision rendered before June 30. The amendment of a budget after May 31, which is properly appealed but without adequate time for hearing and decision before June 30 is void.
   Sec. 82.  IMPLEMENTATION OF DIVISION OF ACT.  Section 25B.2, subsection 3, shall not apply to this division of this Act.
   Sec. 83.  APPLICABILITY.  This division of this Act applies to political subdivision budgets for fiscal years beginning on or after July 1, 2027.
DIVISION XII
ELECTION DATES —— BONDS

   Sec. 84.  Section 39.2, subsection 4, paragraph d, Code 2026, is amended to read as follows:
   d.  For any political subdivision of this state, if the special election is in whole or in part for the question of issuing bonds or other indebtedness, the first Tuesday after the first Monday in June or the first Tuesday after the first Monday in November.  However, a political subdivision shall not hold an election on the question of issuing bonds or other indebtedness on two consecutive election dates authorized under this paragraph.
DIVISION XIII
EMERGENCY MEDICAL SERVICES LEVY

   Sec. 85.  Section 422D.1, subsection 1, paragraph a, subparagraph (2), Code 2026, is amended to read as follows:
   (2)  (a)  An For fiscal years beginning before July 1, 2027, an ad valorem property tax not to exceed seventy-five cents per one thousand dollars of assessed value on all taxable property within the county.
   (b)  For fiscal years beginning on or after July 1, 2027, an ad valorem property tax not to exceed one dollar and fifty cents per one thousand dollars of assessed value on all taxable property within the county. However, for counties authorized to impose the ad valorem property tax under this subparagraph for the fiscal year beginning July 1, 2026, the maximum levy rate for such county shall not exceed a rate of seventy-five cents per one thousand dollars of assessed value unless a rate in excess thereof, not to exceed one dollar and fifty cents per one thousand dollars of assessed value, is approved at an election held on or after July 1, 2026.
DIVISION XIV
SCHOOL DISTRICT UNSPENT BALANCES —— ON-TIME FUNDING AND MODIFIED SUPPLEMENTAL AMOUNTS

   Sec. 86.  Section 257.7, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  Unspent balances.  For school budget years beginning on or after July 1, 2026, a school district’s actual unspent balance from the preceding year used to calculate the authorized budget under subsection 1 shall not exceed an amount equal to thirty-five percent of the school district’s authorized expenditures for the budget year immediately preceding the base year unless a greater amount is authorized by the school budget review committee based on one or more grounds authorized for the approval of a modified supplemental amount under section 257.31.
   Sec. 87.  Section 257.13, Code 2026, is amended to read as follows:
   257.13  On-time funding budget adjustment.
   1.  a.  For the school budget year beginning July 1, 2001, and succeeding budget years beginning before July 1, 2026, if a district’s actual enrollment for the budget year, determined under section 257.6, is greater than its budget enrollment for the budget year, the district shall be eligible to receive an on-time funding budget adjustment. The adjustment shall be in an amount equal to the difference between the actual enrollment for the budget year and the budget enrollment for the budget year, multiplied by the district cost per pupil.
   2.  b.  The board of directors of a school district that wishes to receive an on-time funding budget adjustment under this subsection shall adopt a resolution to receive the adjustment and notify the school budget review committee annually, but not earlier than November 1, as determined by the department of education. The school budget review committee shall establish a modified supplemental amount pursuant to subsection 1 paragraph “a”.
   2.  a.  For the school budget years beginning on or after July 1, 2026, if a district’s actual enrollment for the budget year, determined under section 257.6, is greater than its budget enrollment for the budget year, the district may request an on-time budget adjustment. The adjustment shall not exceed an amount equal to the difference between the actual enrollment for the budget year and the budget enrollment for the budget year, multiplied by the district cost per pupil.
   b.  To request an on-time budget adjustment under this subsection, the board of directors of a school district shall adopt a resolution to receive the adjustment and notify the school budget review committee on or before a date established by the committee. The school budget review committee may establish a modified supplemental amount pursuant to paragraph “a”.
   3.  If the board of directors of a school district determines that a need exists for additional funds exceeding the on-time funding budget adjustment pursuant to this section, a request for a modified supplemental amount based upon increased enrollment may be submitted to the school budget review committee as provided in section 257.31.
   Sec. 88.  NEW SECTION.  279.63A  Unspent balance —— policy.
   1.  The board of directors of each school district shall establish a policy that defines a targeted range and maximum amount of unspent balance of authorized expenditures, determined by a percent of authorized expenditures under section 257.7 or other methodology specified in the policy. The policy shall also state the date the policy was adopted and the date the policy was most recently reviewed or revised under subsection 2. The targeted range and maximum amount established in the policy shall be made with the intent to equalize educational opportunity, provide a good education for all the children of the school district, provide property tax relief, decrease the percentage of school costs paid from property taxes, and to provide reasonable control of school costs.
   2.  Targeted ranges and maximum amounts defined in the policy under subsection 1 shall be reviewed annually by the board of directors and such review shall be entered in the minutes of the board and approved revisions shall be made to the policy.
   Sec. 89.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
DIVISION XV
HOMESTEAD CREDITS AND EXEMPTIONS

   Sec. 90.  Section 10A.518, subsection 2, paragraph b, Code 2026, is amended to read as follows:
   b.  The rules shall require the installation of smoke detectors in existing single-family rental units and multiple-unit residential buildings. Existing single-family dwelling units shall be equipped with approved smoke detectors. A person who files for a homestead credit or exemption pursuant to chapter 425, subchapter I, shall certify that the single-family dwelling unit for which the credit or exemption is filed has a smoke detector installed in compliance with this section, or that one will be installed within thirty days of the date the filing for the credit or exemption is made. The director shall adopt rules and establish appropriate procedures to administer this subsection.
   Sec. 91.  Section 10A.518, subsection 3, paragraph b, Code 2026, is amended to read as follows:
   b.  The rules shall require the installation of carbon monoxide alarms in existing single-family rental units and multiple-unit residential buildings that have a fuel-fired heater or appliance, a fireplace, or an attached garage. Existing single-family dwellings that have a fuel-fired heater or appliance, a fireplace, or an attached garage shall be equipped with approved carbon monoxide alarms. For purposes of this paragraph, “approved carbon monoxide alarm” means a carbon monoxide alarm that meets the standards established by the underwriters’ laboratories or is approved by the director as established by rule under subsection 5. A person who files for a homestead credit or exemption pursuant to chapter 425, subchapter I, shall certify that the single-family dwelling for which the credit or exemption is filed and that has a fuel-fired heater or appliance, a fireplace, or an attached garage, has carbon monoxide alarms installed in compliance with this section, or that such alarms will be installed within thirty days of the date the filing for the credit or exemption is made. The director shall adopt rules and establish appropriate procedures to administer this subsection.
   Sec. 92.  Section 25B.7, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  Homestead tax credit pursuant to section 425.1, andsections 425.2 through 425.13, and section 425.15.
   Sec. 93.  Section 103.22, subsection 7, Code 2026, is amended to read as follows:
   7.  Prohibit an owner of property from performing work on the owner’s principal residence, if such residence is an existing dwelling rather than new construction and is not an apartment that is attached to any other apartment or building, as those terms are defined in section 499B.2, and is not larger than a single-family dwelling, or require such owner to be licensed under this chapter. In order to qualify for inapplicability pursuant to this subsection, a residence shall qualify for the homestead tax credit or exemption.
   Sec. 94.  Section 105.11, subsection 3, Code 2026, is amended to read as follows:
   3.  Prohibit an owner of property from performing work on the owner’s principal residence, if such residence is an existing dwelling rather than new construction and is not larger than a single-family dwelling, or farm property, excluding commercial or industrial installations or installations in public use buildings or facilities, or require such owner to be licensed under this chapter. In order to qualify for inapplicability pursuant to this subsection, a residence shall qualify for the homestead tax credit or exemption.
   Sec. 95.  Section 216.12, subsection 1, paragraph e, Code 2026, is amended to read as follows:
   e.  The rental or leasing of a housing accommodation in a building which contains housing accommodations for not more than four families living independently of each other, if the owner resides in one of the housing accommodations for which the owner qualifies for the homestead tax credit or exemption under section 425.1 chapter 425, subchapter I.
   Sec. 96.  Section 321.1, subsection 6C, Code 2026, is amended to read as follows:
   6C.  “Bona fide residence” or “bona fide address” means the current street or highway address of an individual’s residence. The bona fide residence of a person with more than one dwelling is the dwelling for which the person claims a homestead tax credit or exemption under chapter 425, subchapter I, if applicable. The bona fide residence of a homeless person is a primary nighttime residence meeting one of the criteria listed in section 48A.2, subsection 3.
   Sec. 97.  Section 331.401, subsection 1, paragraphs e and f, Code 2026, are amended to read as follows:
   e.  Adopt resolutions authorizing the county assessor to provide forms for homestead tax exemption and credit claimants as provided in section 425.2 chapter 425, subchapter I, and military service tax exemptions as provided in section 426A.14.
   f.  Examine and allow or disallow claims for homestead tax exemption and credit in accordance with section 425.3 chapter 425, subchapter I, and claims for military service tax exemption in accordance with chapter 426A. The board, by a single resolution, may allow or disallow the exemptions recommended by the assessor.
   Sec. 98.  Section 331.512, subsection 3, Code 2026, is amended to read as follows:
   3.  Carry out duties relating to the homestead tax exemption and credit as provided in chapter 425, subchapter I, and agricultural land tax credit as provided in chapters 425 and chapter426.
   Sec. 99.  Section 331.559, subsection 11, Code 2026, is amended to read as follows:
   11.  Carry out duties relating to the administration of the homestead tax exemption and credit and other credits as provided in sections 425.4, 425.5, 425.7, 425.9, 425.10, and 425.25 chapter 425.
   Sec. 100.  Section 404.3, subsection 1, Code 2026, is amended to read as follows:
   1.  All qualified real estate assessed as residential property is eligible to receive an exemption from taxation based on the actual value added by the improvements. The exemption is for a period of ten years. The amount of the exemption is equal to a percent of the actual value added by the improvements, determined as follows:  One hundred fifteen percent of the value added by the improvements. However, the amount of the actual value added by the improvements which shall be used to compute the exemption shall not exceed twenty thousand dollars and the granting of the exemption shall not result in the actual value of the qualified real estate being reduced below the actual value on which the homestead credit exemption is computed under section 425.1 425.1A, subsection 1A.
   Sec. 101.  Section 425.1, subsection 2, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   2.  a.  The homestead credit fund shall be apportioned each year so as to give a credit against the tax on each eligible homestead in the state equal to the amounts specified pursuant to paragraph “b” or “c”, as applicable.
   b.  (1)  If the owner of a homestead allowed a credit under this subchapter is any of the following, the homestead credit allowed on the homestead shall be the entire amount of tax levied on the homestead:
   (a)  A veteran of any of the military forces of the United States who acquired the homestead under 38 U.S.C. §21.801, 21.802 prior to August 6, 1991, or under 38 U.S.C. §2101, 2102.
   (b)  A veteran as defined in section 35.1 with a permanent service-connected disability rating of one hundred percent, as certified by the United States department of veterans affairs, or a permanent and total disability rating based on individual unemployability that is compensated at the one hundred percent disability rate, as certified by the United States department of veterans affairs.
   (c)  A former member of the national guard of any state who otherwise meets the service requirements of section 35.1, subsection 2, paragraph “b”, subparagraph (2) or (7), with a permanent service-connected disability rating of one hundred percent, as certified by the United States department of veterans affairs, or a permanent and total disability rating based on individual unemployability that is compensated at the one hundred percent disability rate, as certified by the United States department of veterans affairs.
   (d)  An individual who is a surviving spouse or a child and who is receiving dependency and indemnity compensation pursuant to 38 U.S.C. §1301 et seq., as certified by the United States department of veterans affairs.
   (2)  (a)  For an owner described in subparagraph (1), subparagraph division (a), (b), or (c), the credit allowed shall be continued to the estate of an owner who is deceased or the surviving spouse and any child, as defined in section 234.1, who are the beneficiaries of a deceased owner, so long as the surviving spouse remains unmarried.
   (b)  An individual described in subparagraph (1), subparagraph division (d), is no longer eligible for the credit upon termination of dependency and indemnity compensation under 38 U.S.C. §1301 et seq.
   (3)  An owner or a beneficiary of an owner who elects to secure the credit provided in this paragraph is not eligible for the credit provided in paragraph “c” or any other real property tax credit or exemption provided by law for veterans of military service.
   (4)  If an owner acquires a different homestead, the credit allowed under this paragraph may be claimed on the new homestead unless the owner fails to meet the other requirements of this paragraph.
   (5)  (a)  Except as provided in subparagraph division (b), the list of the names and addresses of individuals allowed a credit under this paragraph and maintained by the county recorder, county treasurer, county assessor, city assessor, or other government body is confidential information and shall not be disseminated to any person unless otherwise ordered by a court or released by the lawful custodian of the records pursuant to state or federal law. The county recorder, county treasurer, county assessor, city assessor, or other government body responsible for maintaining the names and addresses of individuals allowed a credit under this paragraph may display such credit on individual paper records and individual electronic records, including display on an internet site.
   (b)  Upon request, a county recorder, county assessor, city assessor, or other entity may share information as described in subparagraph division (a) to a county veterans service officer for purposes of providing information on benefits and services available to veterans and their families.
   (6)  (a)  For an owner who makes an application to secure the credit provided in this paragraph before July 1, 2026, and for the beneficiary of such an owner, “homestead” shall mean the same as defined in section 425.11 for each succeeding assessment year.
   (b)  For an owner who makes an application to secure the credit provided in this paragraph on or after July 1, 2026, and for the beneficiary of such an owner, “homestead” shall mean the same as provided in section 425.11, except the homestead shall not include appurtenances and shall not exceed one-half acre.
   (7)  For purposes of this paragraph, “permanent and total disability rating based on individual unemployability” means a condition under which a person has either a permanent service-connected disability rating of sixty percent or two or more permanent service-connected disability conditions in which one of the conditions has at least a forty percent rating and the combined rating for all the conditions is at least seventy percent, and the person has an administrative adjustment added to the service-connected disability rating, due to individual unemployability, such that the United States department of veterans affairs rates the veteran permanently and totally disabled for purposes of disability compensation.
   c.  (1)  For assessment years beginning prior to January 1, 2026, unless eligible under section 425.15, Code 2026, an amount equal to the actual levy on the first four thousand eight hundred fifty dollars of actual value for each homestead.
   (2)  For the assessment year beginning January 1, 2026, and each assessment year thereafter, unless eligible under paragraph “b”, zero.
   Sec. 102.  Section 425.1A, subsection 1, Code 2026, is amended to read as follows:
   1.  The following exemptions from taxation shall be allowed in addition to following application of the homestead credit exemption under subsection 1A for an owner that has attained the age of sixty-five years by January 1 of the assessment year:
   a.  For the assessment year beginning January 1, 2023, the eligible homestead, not to exceed three thousand two hundred fifty dollars in taxable value.
   b.  For the assessment year years beginning on or after January 1, 2024, and each succeeding assessment year, the eligible homestead, not to exceed six thousand five hundred dollars in taxable value.
   Sec. 103.  Section 425.1A, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  For the assessment year beginning January 1, 2026, and each assessment year thereafter, an exemption from taxation of fifteen thousand dollars in taxable value shall be allowed on each eligible homestead.
   Sec. 104.  Section 425.1A, subsection 2, Code 2026, is amended to read as follows:
   2.  Section 25B.7, subsection 1, shall not apply to the property tax exemption exemptions provided in this section.
   Sec. 105.  Section 425.2, subsections 1 and 2, Code 2026, are amended to read as follows:
   1.  A person who wishes to qualify for the homestead credit or exemptions allowed under this subchapter shall obtain the appropriate forms for filing for the credit from the assessor.  The forms shall include the ability to claim the credit under section 425.1 and the exemptions under section 425.1A. 
However, a separate form shall be required for claiming a credit under section 425.1, subsection 2, paragraph “b”. The person claiming the credit or exemption shall file a verified statement and designation of homestead with the assessor for the year for which the person is first claiming the credit or exemption. The claim shall be filed not later than July 1 of the year for which the person is claiming the credit or exemption. A claim filed after July 1 of the year for which the person is claiming the credit or exemption shall be considered as a claim filed for the following year.
   2.  Upon the filing and allowance of the claim, the claim shall be allowed on that homestead for successive years without further filing as long as the property is legally or equitably owned and used as a homestead by that person or that person’s spouse on July 1 of each of those successive years, and the owner of the property being claimed as a homestead declares residency in Iowa for purposes of income taxation, and the property is occupied by that person or that person’s spouse for at least six months in each of those calendar years in which the fiscal year begins. When the property is sold or transferred, the buyer or transferee who wishes to qualify shall refile for the credit or exemption. However, when the property is transferred as part of a distribution made pursuant to chapter 598, the transferee who is the spouse retaining ownership of the property is not required to refile for the credit or exemption. Property divided pursuant to chapter 598 shall not be modified following the division of the property. An owner who ceases to use a property for a homestead or intends not to use it as a homestead for at least six months in a calendar year shall provide written notice to the assessor by July 1 following the date on which the use is changed. A person who sells or transfers a homestead or the personal representative of a deceased person who had a homestead at the time of death, shall provide written notice to the assessor that the property is no longer the homestead of the former claimant.
   Sec. 106.  Section 425.2, subsection 4, Code 2026, is amended by striking the subsection.
   Sec. 107.  Section 425.2, subsections 5 and 6, Code 2026, are amended to read as follows:
   5.  Any person sixty-five years of age or older or any person who is disabled may request, in writing, from the appropriate assessor forms for filing for homestead tax credit. Any person sixty-five years of age or older or who is disabled may complete the form, which shall include a statement of homestead, and mail or return it to the appropriate assessor. The signature of the claimant on the statement shall be considered the claimant’s acknowledgment that all statements and facts entered on the form are correct to the best of the claimant’s knowledge.
   6.  Upon adoption of a resolution by the county board of supervisors, any person may request, in writing, from the appropriate assessor forms for the filing for homestead tax credit. The person may complete the form, which shall include a statement of homestead, and mail or return it to the appropriate assessor. The signature of the claimant on the statement of homestead shall be considered the claimant’s acknowledgment that all statements and facts entered on the form are correct to the best of the claimant’s knowledge.
   Sec. 108.  Section 425.8, subsection 1, Code 2026, is amended to read as follows:
   1.  The director of revenue shall prescribe the form for the making of a verified statement and designation of homestead, the form for the supporting affidavits required herein, and such other forms as may be necessary for the proper administration of this subchapter. Whenever necessary, the department of revenue shall forward to the county auditors of the several counties in the state the prescribed sample forms, and the county auditors shall furnish blank forms prepared in accordance therewith with the assessment rolls, books, and supplies delivered to the assessors. The department of revenue shall prescribe and the county auditors shall provide on the forms for claiming the homestead credit a statement to the effect that the owner realizes that the owner must give written notice to the assessor when the owner changes the use of the property.
   Sec. 109.  Section 425.11, subsection 1, paragraph d, subparagraph (1), unnumbered paragraph 1, Code 2026, is amended to read as follows:
   The homestead includes the dwelling house which the owner, in good faith, is occupying as a home on July 1 of the year for which the credit or exemption is claimed and occupies as a home for at least six months during the calendar year in which the fiscal year begins, except as otherwise provided.
   Sec. 110.  Section 425.11, subsection 1, paragraph d, subparagraph (3), Code 2026, is amended to read as follows:
   (3)  It must not embrace more than one dwelling house, but where a homestead has more than one dwelling house situated thereon, the exemption and or credit provided for in this subchapter shall apply to the home and buildings used by the owner, but shall not apply to any other dwelling house and buildings appurtenant.
   Sec. 111.  Section 425.11, subsection 1, paragraph e, subparagraph (2), Code 2026, is amended to read as follows:
   (2)  For the purpose of this subchapter, the word “owner” shall be construed to mean a bona fide owner and not one for the purpose only of availing the person of the benefits of this subchapter. In order to qualify for the homestead tax credit and or exemption, evidence of ownership shall be on file in the office of the clerk of the district court or recorded in the office of the county recorder at the time the owner files with the assessor a verified statement of the homestead claimed by the owner as provided in section 425.2.
   Sec. 112.  Section 483A.24, subsection 20, Code 2026, is amended to read as follows:
   20.  Upon payment of a fee established by rules adopted pursuant to section 483A.1 for a lifetime trout fishing license, the department shall issue a lifetime trout fishing license to a person who is at least sixty-five years of age or to a person who qualifies for the disabled veteran homestead credit under section 425.15 425.1, subsection 2, paragraph “b”. The department shall prepare an application to be used by a person requesting a lifetime trout fishing license under this subsection.
   Sec. 113.  REPEAL.  Section 425.15, Code 2026, is repealed.
   Sec. 114.  IMPLEMENTATION.  Homestead owners who have filed for or that are receiving homestead credits or exemptions under chapter 425, subchapter I, before the effective date of this division of this Act shall continue to receive such credits and exemptions for which the owner is eligible for assessment years beginning on or after January 1, 2026, without refiling, and, if the owner is eligible, shall receive the exemption under section 425.1A, subsection 1A, as enacted in this division of this Act, without filing for such exemption.
   Sec. 115.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to assessment years beginning on or after January 1, 2026.
DIVISION XVI
AGRICULTURAL EXTENSION LEVY

   Sec. 116.  Section 176A.10, Code 2026, is amended to read as follows:
   176A.10  County agricultural extension education tax.
   1.  The extension council of each extension district shall, at a meeting held before April 30, estimate the amount of money required to be raised by taxation for financing the county agricultural extension education program authorized in this chapter. The annual tax levy and the amount of money to be raised from the levy for the county agricultural extension education fund shall not exceed the following: amount levied for the immediately preceding fiscal year plus any allowable increase under section 444.25.
   a.  (1)  Except as provided in subparagraph (2), for an extension district having a population of less than thirty thousand, an annual levy of twenty and one-fourth cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of seventy thousand dollars for the fiscal year commencing July 1, 1985, and seventy-five thousand dollars for each subsequent fiscal year.
   (2)  For an extension district having a population of less than thirty thousand and as provided in subsection 2, an annual levy of thirty cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of eighty-seven thousand dollars payable during the fiscal year commencing July 1, 1992, and an increase of six thousand dollars in the amount payable during each subsequent fiscal year.
   b.  (1)  Except as provided in subparagraph (2), for an extension district having a population of thirty thousand or more but less than fifty thousand, an annual levy of twenty and one-fourth cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of eighty-four thousand dollars for the fiscal year commencing July 1, 1985, and ninety thousand dollars for each subsequent fiscal year.
   (2)  For an extension district having a population of thirty thousand or more but less than fifty thousand and as provided in subsection 2, an annual levy of twenty and one-fourth cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of one hundred four thousand dollars payable during the fiscal year commencing July 1, 1992, and an increase of seven thousand dollars in the amount payable during each subsequent fiscal year.
   c.  (1)  Except as provided in subparagraph (2), for an extension district having a population of fifty thousand or more but less than ninety-five thousand, an annual levy of thirteen and one-half cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of one hundred five thousand dollars for the fiscal year commencing July 1, 1985, and one hundred twelve thousand five hundred dollars for each subsequent fiscal year.
   (2)  For an extension district having a population of fifty thousand or more but less than ninety thousand and as provided in subsection 2, an annual levy of thirteen and one-half cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of one hundred thirty thousand five hundred dollars payable during the fiscal year commencing July 1, 1992, and an increase of nine thousand dollars in the amount payable during each subsequent fiscal year.
   d.  (1)  Except as provided in subparagraph (2), for an extension district having a population of ninety-five thousand or more, an annual levy of thirteen and one-half cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of one hundred forty thousand dollars for the fiscal year commencing July 1, 1985, and one hundred fifty thousand dollars for each subsequent fiscal year.
   (2)  For an extension district having a population of ninety thousand or more but less than two hundred thousand and as provided in subsection 2, an annual levy of thirteen and one-half cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of one hundred eighty thousand dollars payable during the fiscal year commencing July 1, 1992, and an increase of fifteen thousand dollars in the amount payable during each subsequent fiscal year.
   e.  For an extension district having a population of two hundred thousand or more and as provided in subsection 2, an annual levy of five cents per thousand dollars of the assessed valuation of the taxable property in the district up to a maximum of two hundred thousand dollars payable during the fiscal year commencing July 1, 1992, and an increase of twenty-five thousand dollars in the amount payable during each subsequent fiscal year.
   2.  An extension council of an extension district may choose to be subject to the levy and revenue limits specified in subsection 1, paragraph “a”, subparagraph (2), paragraph “b”, subparagraph (2), paragraph “c”, subparagraph (2), and paragraph “d”, subparagraph (2), and subsection 1, paragraph “e”, for the purpose of the annual levy for the fiscal year commencing July 1, 1991, which levy is payable in the fiscal year beginning July 1, 1992. Before an extension district may be subject to the levy and revenue limits specified in subsection 1, paragraph “a”, subparagraph (2), paragraph “b”, subparagraph (2), paragraph “c”, subparagraph (2), and paragraph “d”, subparagraph (2), and subsection 1, paragraph “e”, for fiscal years beginning on or after July 1, 1992, which levy is payable in fiscal years beginning on or after July 1, 1993, the question of whether the district shall be subject to the levy and revenue limits as specified in such paragraphs must be submitted to the registered voters of the district. The question shall be submitted at the time of a general election. If the question is approved by a majority of those voting on the question the levy and revenue limits specified in subsection 1, paragraph “a”, subparagraph (2), paragraph “b”, subparagraph (2), paragraph “c”, subparagraph (2), and paragraph “d”, subparagraph (2), and subsection 1, paragraph “e”, shall thereafter apply to the extension district. The question need only be approved at one general election. If a majority of those voting on the question vote against the question, the district may continue to submit the question at subsequent general elections until approved.
   3.  2.  The extension council in each extension district shall comply with chapter 24.
   Sec. 117.  APPLICABILITY.  This division of this Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2027.>
   2.  Title page, by striking lines 1 through 5 and inserting <An Act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, and urban renewal areas, establishing a program for certain first-time homebuyers, establishing a local government efficiency grant fund, making appropriations, and including effective date, applicability and retroactive applicability provisions.>