HF 235 (LSB 1995YH (2) 91)

HOUSE FILE 235

BY  STONE

A BILL FOR

An Act modifying the general and rural county services levy rate limitation for fiscal years beginning on or after July 1, 2026.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.423, subsection 1, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  (1)  Notwithstanding the limitations under paragraphs “b” and “c”, for fiscal years beginning on or after July 1, 2026, if the total assessed value used to calculate taxes for general county services under this subsection for the budget year is equal to or less than one hundred one percent of the total assessed value used to calculate taxes for general county services for the current fiscal year, the levy rate under this subsection may be increased up to a rate per thousand dollars of assessed value used to calculate taxes that is equal to one thousand multiplied by the quotient of one hundred three percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 divided by the total assessed value used to calculate such taxes for the budget year.
   (2)  A general county basic levy rate shall only be adjusted under this paragraph one time for one fiscal year for each county.
    Sec. 2.  Section 331.423, subsection 2, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  (1)  Notwithstanding the limitations under paragraphs “b” and “c”, for fiscal years beginning on or after July 1, 2026, if the total assessed value used to calculate taxes for rural county services under this subsection for the budget year is equal to or less than one hundred one percent of the total assessed value used to calculate taxes for rural county services for the current fiscal year, the levy rate under this subsection may be increased up to a rate per thousand dollars of assessed value used to calculate taxes that is equal to one thousand multiplied by the quotient of one hundred three percent of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by the total assessed value used to calculate such taxes for the budget year.
   (2)  A rural county basic levy rate shall only be adjusted under this paragraph one time for one fiscal year for each county.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill modifies the general and rural county services levy rate limitation for fiscal years beginning on or after July 1, 2026.
   Under the bill, the general county services levy rate may be increased if the total assessed value for the budget year is equal to or less than 101 percent of the total assessed value use to calculate taxes for the current fiscal year. The general county services rate may be increased up to a rate per $1,000 of assessed value that is equal to 1,000 multiplied by the quotient of 103 percent of the current fiscal year’s actual property tax dollars certified for levy divided by the total assessed value used to calculate such taxes for the budget year.
   The rural county basic levy rate may be similarly adjusted under the bill.
   The bill specifies a general or rural county services levy rate may only be adjusted one time for one fiscal year.