House Study Bill 781 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON NORDMAN) A BILL FOR An Act permitting an increase in the cash reserve levy for 1 certain school districts and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6962YC (4) 91 mb/md

H.F. _____ Section 1. SCHOOL DISTRICT CASH RESERVE LEVY INCREASE —— 1 SCHOOL BUDGET YEAR 2026-2027. 2 1. For the school budget year beginning July 1, 2026, a 3 school district for which the taxable value used to calculate 4 school district property taxes for the school budget year 5 beginning July 1, 2025, was reduced by one hundred million 6 dollars or more due to a correction to the taxable value of 7 a single property within the school district made during the 8 school budget year beginning July 1, 2025, may increase the 9 school district’s proposed cash reserve levy under section 10 298.10 to an amount that exceeds the limitations of section 11 298.10, if the district complies with subsection 2. 12 2. A school district that increases its cash reserve levy 13 pursuant to this section shall also reduce one or more other 14 property tax levies of the school district, including the 15 district management levy under section 298.4, by a total amount 16 equal to or greater than the increase in the cash reserve 17 levy so that the total property tax dollars for all property 18 tax levies of the school district does not exceed the school 19 district’s combined amount of property tax dollars determined 20 under section 24.2A, subsection 2, paragraph “b”, subparagraph 21 (3). 22 3. A school district that wishes to adjust its levy rates 23 pursuant to this section shall notify the department of 24 management in a manner prescribed by the department. Following 25 receipt of the notice from the school district, the department 26 of management shall adjust the school district’s property tax 27 levy rates as necessary to implement this section. 28 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 29 importance, takes effect upon enactment. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill provides that for the school budget year beginning 34 July 1, 2026, a school district for which the taxable value 35 -1- LSB 6962YC (4) 91 mb/md 1/ 2

H.F. _____ used to calculate school district property taxes for the school 1 budget year beginning July 1, 2025, was reduced by $100 million 2 or more due to a correction to the taxable value of a single 3 property within the school district made during the school 4 budget year beginning July 1, 2025, may increase the school 5 district’s proposed cash reserve levy under Code section 298.10 6 to an amount that exceeds the limitations of Code section 7 298.10 if the district reduces one or more property tax levies 8 of the school district, including the district’s management 9 levy under Code section 298.4, by an amount equal to or greater 10 than the amount of the increase to the cash reserve levy so 11 that the school district still complies with the total proposed 12 property tax dollars under Code section 24.2A. 13 A school district that wishes to adjust its levy rates 14 pursuant to the bill shall notify the department of management 15 in a manner prescribed by the department. The department 16 shall adjust the school district’s property tax levy rates as 17 necessary to implement the bill. 18 The bill takes effect upon enactment. 19 -2- LSB 6962YC (4) 91 mb/md 2/ 2