HSB 781 (LSB 6962YC (4) 91)

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 certain school districts and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  SCHOOL DISTRICT CASH RESERVE LEVY INCREASE —— SCHOOL BUDGET YEAR 2026-2027.
   1.  For the school budget year beginning July 1, 2026, a school district for which the taxable value used to calculate school district property taxes for the school budget year beginning July 1, 2025, was reduced by one hundred million dollars or more due to a correction to the taxable value of a single property within the school district made during the school budget year beginning July 1, 2025, may increase the school district’s proposed cash reserve levy under section 298.10 to an amount that exceeds the limitations of section 298.10, if the district complies with subsection 2.
   2.  A school district that increases its cash reserve levy pursuant to this section shall also reduce one or more other property tax levies of the school district, including the district management levy under section 298.4, by a total amount equal to or greater than the increase in the cash reserve levy so that the total property tax dollars for all property tax levies of the school district does not exceed the school district’s combined amount of property tax dollars determined under section 24.2A, subsection 2, paragraph “b”, subparagraph (3). 
   3.  A school district that wishes to adjust its levy rates pursuant to this section shall notify the department of management in a manner prescribed by the department. Following receipt of the notice from the school district, the department of management shall adjust the school district’s property tax levy rates as necessary to implement this section.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides that for the school budget year beginning July 1, 2026, a school district for which the taxable value used to calculate school district property taxes for the school budget year beginning July 1, 2025, was reduced by $100 million or more due to a correction to the taxable value of a single property within the school district made during the school budget year beginning July 1, 2025, may increase the school district’s proposed cash reserve levy under Code section 298.10 to an amount that exceeds the limitations of Code section 298.10 if the district reduces one or more property tax levies of the school district, including the district’s management levy under Code section 298.4, by an amount equal to or greater than the amount of the increase to the cash reserve levy so that the school district still complies with the total proposed property tax dollars under Code section 24.2A.
   A school district that wishes to adjust its levy rates pursuant to the bill shall notify the department of management in a manner prescribed by the department. The department shall adjust the school district’s property tax levy rates as necessary to implement the bill.
   The bill takes effect upon enactment.