HF 719 (LSB 2586YH (2) 91)

HOUSE FILE 719

BY  WILLS

A BILL FOR

An Act requiring the department of revenue to issue a request for proposals to study local taxing authority processes and procedures.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  DEPARTMENT OF REVENUE —— LOCAL TAXING AUTHORITIES —— REQUEST FOR PROPOSALS.
   1.  The department of revenue, in consultation with the department of government efficiency task force, shall issue a request for proposals to hire a private entity to conduct a study of local taxing authorities in this state in order to achieve the most efficient and cost-effective methods for local taxing authorities to levy and collect taxes and assess property values or other applicable taxing methods.
   2.  The request for proposals shall be issued by July 1, 2026, and a contract shall be executed with the contractor selected by October 1, 2026. The contract shall provide that ninety percent of the total cost shall be paid by the state and ten percent of the total cost shall be paid by the local taxing authorities as determined by the department of revenue.
   3.  The department of revenue shall submit to the general assembly a report detailing findings from the study conducted by the private entity by June 30, 2027.
   4.  For purposes of this section, “local taxing authority” includes a county, city, school district, township, or an entity organized pursuant to chapter 28E that has taxing authority.
    Sec. 2.  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 requires the department of revenue, in consultation with the department of government efficiency task force, to issue a request for proposals to hire a private entity to conduct a study of local taxing authorities in this state in order to achieve the most efficient and cost-effective methods for local taxing authorities to levy and collect taxes and assess property values or other applicable taxing methods. The bill requires the request for proposals to be issued by July 1, 2026, and a contract to be executed with the contractor selected by October 1, 2026. The contract shall provide that 90 percent of the total cost shall be paid by the state and 10 percent shall be paid by the local taxing authorities as determined by the department of revenue.
   The department of revenue must submit to the general assembly a report detailing findings from the study conducted by the private entity by June 30, 2027. “Local taxing authority” includes a county, city, school district, township, or an entity organized pursuant to Code chapter 28E that has taxing authority.
   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.