HF 39 (LSB 1116YH (2) 91)

HOUSE FILE 39

BY  GUSTOFF

A BILL FOR

An Act relating to local governments by modifying individual property tax statements mailed to owners and taxpayers, and requiring notifications by mail of bond issuances.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 24.2A, subsection 2, paragraph b, Code 2025, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (07)  For budgets for fiscal years beginning on or after July 1, 2026, a comparison of the amount of property taxes due on the owner’s or taxpayer’s property for the current fiscal year and the estimate of the proposed amount of property taxes due on the owner’s or taxpayer’s property for the budget year, including the percentage in change in such amounts.
    Sec. 2.  Section 331.442, subsection 2, paragraph a, Code 2025, is amended to read as follows:
   a.  The board shall publish notice of the proposal to issue the bonds, including a statement of the amount and purpose of the bonds, a statement of the estimated cost of the project for which the bonds are to be issued, and an estimate of the annual increase in property taxes as the result of the bond issuance on a residential property with an actual value of one hundred thousand dollars. The notice shall be published as provided in section 331.305 with the minutes of the meeting at which the board adopts a resolution to call a county special election to vote upon the question of issuing the bonds. The cost of the project, as published in the notice pursuant to this paragraph, is an estimate and is not intended to be binding on the board in later proceedings related to the project.  In addition to publishing the notice of the proposal to issue the bonds, the board shall mail a copy of the notice of the proposal by regular mail to each eligible elector of the county.
    Sec. 3.  Section 384.25, subsection 2, Code 2025, is amended to read as follows:
   2.  Before the council may institute proceedings for the issuance of bonds for an essential corporate purpose, a notice of the proposed action, including a statement of the amount and purposes of the bonds, and an estimate of the annual increase in property taxes as the result of the bond issuance on a residential property with an actual value of one hundred thousand dollars, and the time and place of the meeting at which the council proposes to take action for the issuance of the bonds, must be published as provided in section 362.3.  In addition to publishing the notice of the proposed action, the council shall mail a copy of the notice of the proposed action by regular mail to each eligible elector of the city. At the meeting, the council shall receive oral or written objections from any resident or property owner of the city. After all objections have been received and considered, the council may, at that meeting or any adjournment thereof, take additional action for the issuance of the bonds or abandon the proposal to issue the bonds. Any resident or property owner of the city may appeal the decision of the council to take additional action to the district court of the county in which any part of the city is located, within fifteen days after the additional action is taken, but the additional action of the council is final and conclusive unless the court finds that the council exceeded its authority. The provisions of this subsection with respect to notice, hearing, and appeal, are in lieu of the provisions contained in chapter 73A, or any other law.
    Sec. 4.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection 3, shall not apply to this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to local governments by modifying individual property tax statements mailed to owners and taxpayers, and providing notifications by mail of bond issuances.
   For budgets for fiscal years beginning on or after July 1, 2026, the individual property tax statements mailed to owners and taxpayers shall contain a comparison of the amount of property taxes due on the owner’s or taxpayer’s property for the current fiscal year and the estimate of the proposed amount of property taxes due on the owner’s or taxpayer’s property for the budget year, including the percentage change in such amounts.
   Currently, a city or county must publish the notice of a proposal to issue bonds. The bill requires the city or county to mail a copy of the notice to issue bonds by regular mail to each eligible elector of the city or county, as applicable.
   The bill may include a state mandate as defined in Code section 25B.3. The bill makes inapplicable Code section 25B.2, subsection 3, which would relieve a political subdivision from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, political subdivisions are required to comply with any state mandate included in the bill.