House Study Bill 768 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON NORDMAN) A BILL FOR An Act relating to school district budgeting by modifying 1 provisions relating to proposed property tax amounts. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6928YC (3) 91 mb/md

H.F. _____ Section 1. Section 24.2A, subsection 2, paragraph b, 1 subparagraph (3), Code 2026, is amended to read as follows: 2 (3) The combined amount of the proposed property tax dollars 3 to be certified for all of the political subdivision’s levies 4 for the budget year and the proposed combined property tax rate 5 per one thousand dollars for such levies. If the political 6 subdivision is a school district and the state percent of 7 growth and the categorical state percent of growth for the 8 applicable school budget year have not been established by law 9 prior to March 5, the proposed property tax dollar amount shall 10 not exceed such property tax dollar amounts calculated using 11 percents of growth equal to those applicable to the immediately 12 preceding school budget year. 13 Sec. 2. Section 24.2A, subsection 4, paragraph a, Code 2026, 14 is amended to read as follows: 15 a. Each political subdivision shall set a time and place 16 for a public hearing on the political subdivision’s proposed 17 property tax amount for the budget year and the political 18 subdivision’s information included in the statements under 19 subsection 2 . The proposed property tax hearing shall be set 20 on a date on or after March 20 of the budget year immediately 21 preceding the budget year for which the tax is being proposed. 22 At the hearing, the governing body of the political subdivision 23 shall receive oral or written testimony from any resident or 24 property owner of the political subdivision. This public 25 hearing shall be separate from any other meeting of the 26 governing body of the political subdivision, including any 27 other meeting or public hearing relating to the political 28 subdivision’s budget, and other business of the political 29 subdivision that is not related to the proposed property tax 30 amounts and the information in the statements shall not be 31 conducted at the public hearing. After all testimony has been 32 received and considered, the governing body may decrease, 33 but not increase, the proposed property tax amount to be 34 included in the political subdivision’s budget. However, 35 -1- LSB 6928YC (3) 91 mb/md 1/ 2

H.F. _____ if the political subdivision is a school district, due to 1 the timing of enrollment determinations and enactment of 2 legislation affecting school district budgets during the budget 3 process, the school district may, subject to other limitations 4 established by law, increase the proposed property tax amount 5 to be included in the school district’s budget. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 Cities, counties, and school districts are prohibited from 10 increasing applicable proposed property tax amounts following 11 the hearing under Code section 24.2A as part of the budgeting 12 process. This bill permits a school district, due to the 13 timing of enrollment determinations and the enactment of school 14 aid legislation, to increase the proposed property tax amount 15 to be included in the school district’s budget. 16 The bill also provides that if the political subdivision 17 is a school district and the state percent of growth and 18 the categorical state percent of growth for the applicable 19 school budget year have not been established by law prior to 20 March 5, the proposed property tax dollar amount under Code 21 section 24.2A shall not exceed such property tax dollar amounts 22 calculated using percents of growth equal to those applicable 23 to the immediately preceding school budget year. 24 -2- LSB 6928YC (3) 91 mb/md 2/ 2