S.F. 2472 DIVISION I 1 COUNTY PROPERTY TAXES AND BUDGETS 2 Section 1. Section 331.423, subsection 1, paragraph b, 3 subparagraph (1), Code 2026, is amended to read as follows: 4 (1) For each fiscal year beginning on or after July 1, 5 2024, but before July 1, 2028 2027 , subject to subparagraph 6 (3), the greater of three dollars and fifty cents per thousand 7 dollars of assessed value used to calculate taxes for general 8 county services for the budget year and the adjusted general 9 county basic levy rate, as adjusted under subparagraph (2), if 10 applicable. 11 Sec. 2. Section 331.423, subsection 1, paragraph c, Code 12 2026, is amended to read as follows: 13 c. For each fiscal year beginning on or after July 1, 2028, 14 three dollars and fifty cents per thousand dollars of assessed 15 value. For the fiscal year beginning July 1, 2027, the greater 16 of: 17 (1) A levy rate per one thousand dollars of assessed value 18 equal to one thousand multiplied by the quotient of one hundred 19 two percent of the current fiscal year’s actual property tax 20 dollars certified for levy under this subsection 1 divided by 21 the remainder of the total assessed value used to calculate 22 such taxes for the budget year minus value attributable to new 23 valuation. 24 (2) A levy rate per one thousand dollars of assessed value 25 that results in an amount of actual property tax dollars 26 certified for levy under this subsection 1 equal to one 27 hundred and one-half percent of the actual property tax dollars 28 certified for levy under this subsection 1 for the current 29 fiscal year. 30 Sec. 3. Section 331.423, subsection 1, Code 2026, is amended 31 by adding the following new paragraph: 32 NEW PARAGRAPH . d. (1) For each fiscal year beginning 33 on or after July 1, 2028, the levy rate imposed under this 34 subsection 1 for the current fiscal year, unless subject to 35 -1- LSB 5195SV (2) 91 md/jh 1/ 117

S.F. 2472 subparagraph (2), and for the budget year beginning July 1, 1 2028, only, not less than a levy rate per one thousand dollars 2 of assessed value that results in an amount of actual property 3 tax dollars certified for levy under this subsection 1 equal 4 to one hundred and one-half percent of the actual property tax 5 dollars certified for levy under this subsection 1 for the 6 current fiscal year. 7 (2) (a) If the total assessed value, excluding value 8 attributable to new valuation, used to calculate taxes for 9 general county services under this subsection 1 for the budget 10 year is equal to or exceeds one hundred two percent of the 11 total assessed value used to calculate taxes for general 12 county services for the current fiscal year, the levy rate 13 imposed under this subsection 1 shall not exceed a levy rate 14 per one thousand dollars of assessed value that is equal to 15 one thousand multiplied by the quotient obtained by dividing 16 the product of the budget adjustment factor multiplied by the 17 current fiscal year’s actual property tax dollars certified 18 for levy under this subsection 1 by the remainder of the total 19 assessed value used to calculate such taxes for the budget year 20 minus value attributable to new valuation. 21 (b) (i) For purposes of this subparagraph, “budget 22 adjustment factor” is equal to one of the following, unless 23 modified by the general assembly on or before January 31 24 immediately preceding the applicable fiscal year: 25 (A) If the percentage change in the consumer price index for 26 all urban consumers is less than four, one hundred two percent. 27 (B) If the percentage change in the consumer price index for 28 all urban consumers is equal to or greater than four but less 29 than six, one hundred three percent. 30 (C) If the percentage change in the consumer price index for 31 all urban consumers is equal to or greater than six but less 32 than eight, one hundred four percent. 33 (D) If the percentage change in the consumer price index 34 for all urban consumers is equal to or greater than eight, one 35 -2- LSB 5195SV (2) 91 md/jh 2/ 117

S.F. 2472 hundred five percent. 1 (ii) The percentage change in the consumer price index for 2 all urban consumers shall be equal to one hundred multiplied 3 by the quotient of the remainder of the published value of the 4 consumer price index for all urban consumers for the month 5 ending eight months prior to the beginning of the applicable 6 budget year minus the published value of the consumer price 7 index for all urban consumers for the month ending twenty 8 months prior to the beginning of the applicable budget year 9 divided by the published value of the consumer price index for 10 all urban consumers for the month ending twenty months prior to 11 the beginning of the applicable budget year. 12 Sec. 4. Section 331.423, subsection 2, paragraph b, 13 subparagraph (1), Code 2026, is amended to read as follows: 14 (1) For each fiscal year beginning on or after July 1, 2024, 15 but before July 1, 2028 2027 , subject to subparagraph (3), the 16 greater of three dollars and ninety-five cents per thousand 17 dollars of assessed value used to calculate taxes for rural 18 county services for the budget year and the adjusted rural 19 county basic levy rate, as adjusted under subparagraph (2), if 20 applicable. 21 Sec. 5. Section 331.423, subsection 2, paragraph c, Code 22 2026, is amended to read as follows: 23 c. For each fiscal year beginning on or after July 1, 2028, 24 three dollars and ninety-five cents per thousand dollars of 25 assessed value. For the fiscal year beginning July 1, 2027, 26 the greater of: 27 (1) A levy rate per one thousand dollars of assessed value 28 equal to one thousand multiplied by the quotient of one hundred 29 two percent of the current fiscal year’s actual property tax 30 dollars certified for levy under this subsection 2 divided by 31 the remainder of the total assessed value used to calculate 32 such taxes for the budget year minus value attributable to new 33 valuation. 34 (2) A levy rate per one thousand dollars of assessed value 35 -3- LSB 5195SV (2) 91 md/jh 3/ 117

S.F. 2472 that results in an amount of actual property tax dollars 1 certified for levy under this subsection 2 equal to one 2 hundred and one-half percent of the actual property tax dollars 3 certified for levy under this subsection 2 for the current 4 fiscal year. 5 Sec. 6. Section 331.423, subsection 2, Code 2026, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . d. (1) For each fiscal year beginning 8 on or after July 1, 2028, the levy rate imposed under this 9 subsection 2 for the current fiscal year, unless subject to 10 subparagraph (2), and for the budget year beginning July 1, 11 2028, only, not less than a levy rate per one thousand dollars 12 of assessed value that results in an amount of actual property 13 tax dollars certified for levy under this subsection 2 equal 14 to one hundred and one-half percent of the actual property tax 15 dollars certified for levy under this subsection 2 for the 16 current fiscal year. 17 (2) (a) If the total assessed value, excluding value 18 attributable to new valuation, used to calculate taxes for 19 rural county services under this subsection 2 for the budget 20 year is equal to or exceeds one hundred two percent of the 21 total assessed value used to calculate taxes for rural county 22 services for the current fiscal year, the levy rate imposed 23 under this subsection 2 shall not exceed a levy rate per 24 one thousand dollars of assessed value that is equal to one 25 thousand multiplied by the quotient obtained by dividing the 26 product of the budget adjustment factor multiplied by the 27 current fiscal year’s actual property tax dollars certified 28 for levy under this subsection 2 by the remainder of the total 29 assessed value used to calculate such taxes for the budget year 30 minus value attributable to new valuation. 31 (b) (i) For purposes of this subparagraph, “budget 32 adjustment factor” is equal to one of the following, unless 33 modified by the general assembly on or before January 31 34 immediately preceding the applicable fiscal year: 35 -4- LSB 5195SV (2) 91 md/jh 4/ 117

S.F. 2472 (A) If the percentage change in the consumer price index for 1 all urban consumers is less than four, one hundred two percent. 2 (B) If the percentage change in the consumer price index for 3 all urban consumers is equal to or greater than four but less 4 than six, one hundred three percent. 5 (C) If the percentage change in the consumer price index for 6 all urban consumers is equal to or greater than six but less 7 than eight, one hundred four percent. 8 (D) If the percentage change in the consumer price index 9 for all urban consumers is equal to or greater than eight, one 10 hundred five percent. 11 (ii) The percentage change in the consumer price index for 12 all urban consumers shall be equal to one hundred multiplied 13 by the quotient of the remainder of the published value of the 14 consumer price index for all urban consumers for the month 15 ending eight months prior to the beginning of the applicable 16 budget year minus the published value of the consumer price 17 index for all urban consumers for the month ending twenty 18 months prior to the beginning of the applicable budget year 19 divided by the published value of the consumer price index for 20 all urban consumers for the month ending twenty months prior to 21 the beginning of the applicable budget year. 22 Sec. 7. Section 331.423, subsection 3, Code 2026, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . c. “New valuation” means the increase 25 from the current fiscal year to the budget year in taxable 26 valuation, as shown on the assessment roll due to the 27 following, the amount of each as reported under section 331.510 28 by the county auditor to the department of management: 29 (1) New construction. 30 (2) Additions or improvements to existing structures that 31 are not normal and necessary repairs under section 441.21, 32 subsection 8. 33 (3) Net boundary adjustments, including annexation, 34 severance, incorporation, consolidation, or discontinuance as 35 -5- LSB 5195SV (2) 91 md/jh 5/ 117

S.F. 2472 those terms are defined in section 368.1. 1 Sec. 8. EFFECTIVE DATE. This division of this Act takes 2 effect January 1, 2027. 3 Sec. 9. APPLICABILITY. This division of this Act applies 4 to property taxes and budgets for fiscal years beginning on or 5 after July 1, 2027. 6 DIVISION II 7 CITY PROPERTY TAXES AND BUDGETS 8 Sec. 10. Section 384.1, subsection 3, paragraph c, 9 subparagraph (1), Code 2026, is amended to read as follows: 10 (1) For each fiscal year beginning on or after July 1, 11 2024, but before July 1, 2028 2027 , subject to subparagraph 12 (3), a city’s tax levy for the general fund, except for levies 13 authorized in section 384.12 , shall not exceed in any tax year 14 the greater of eight dollars and ten cents per thousand dollars 15 of assessed value used to calculate taxes for the budget year 16 and the adjusted city general fund levy rate, as adjusted under 17 subparagraph (2), if applicable. 18 Sec. 11. Section 384.1, subsection 3, paragraph d, Code 19 2026, is amended to read as follows: 20 d. (1) For each fiscal year beginning on or after July 1, 21 2028, a city’s tax levy rate for the general fund, except for 22 levies authorized in section 384.12 , shall not exceed eight 23 dollars and ten cents per thousand dollars of assessed value 24 used to calculate taxes in any fiscal year. For the fiscal 25 year beginning July 1, 2027, a city’s tax levy rate for the 26 general fund, except for levies authorized in section 384.12, 27 shall not exceed the greater of: 28 (a) A levy rate per one thousand dollars of assessed value 29 equal to one thousand multiplied by the quotient of one hundred 30 two percent of the current fiscal year’s actual property tax 31 dollars certified for levy under this subsection divided by 32 the remainder of the total assessed value used to calculate 33 such taxes for the budget year minus value attributable to new 34 valuation. 35 -6- LSB 5195SV (2) 91 md/jh 6/ 117

S.F. 2472 (b) A levy rate per one thousand dollars of assessed value 1 that results in an amount of actual property tax dollars 2 certified for levy under this subsection equal to one hundred 3 and one-half percent of the actual property tax dollars 4 certified for levy under this subsection for the current fiscal 5 year. 6 (2) Notwithstanding other provisions of this paragraph, 7 if a city’s actual levy rate for the current fiscal year is 8 zero dollars per one thousand dollars of assessed value, a levy 9 rate per one thousand dollars of assessed value equal to one 10 thousand multiplied by the quotient of one hundred two percent 11 of the city’s certified general fund budget for the current 12 fiscal year divided by the remainder of the total assessed 13 value used to calculate taxes for the budget year minus value 14 attributable to new valuation. 15 Sec. 12. Section 384.1, subsection 3, Code 2026, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . e. (1) For each fiscal year beginning on 18 or after July 1, 2028, a city’s tax levy rate for the general 19 fund, except for levies authorized in section 384.12, shall 20 not exceed the levy rate imposed under this subsection for the 21 current fiscal year, unless subject to subparagraph (2), and 22 for the budget year beginning July 1, 2028, only, not less than 23 a levy rate per one thousand dollars of assessed value that 24 results in an amount of actual property tax dollars certified 25 for levy under this subsection equal to one hundred and 26 one-half percent of the actual property tax dollars certified 27 for levy under this subsection for the current fiscal year. 28 (2) (a) If the total assessed value, excluding value 29 attributable to new valuation, used to calculate taxes under 30 this subsection for the budget year is equal to or exceeds 31 one hundred two percent of the total assessed value used to 32 calculate taxes under this subsection for the current fiscal 33 year, the city’s levy rate under this subsection shall not 34 exceed a levy rate per one thousand dollars of assessed value 35 -7- LSB 5195SV (2) 91 md/jh 7/ 117

S.F. 2472 that is equal to one thousand multiplied by the quotient 1 obtained by dividing the product of the budget adjustment 2 factor multiplied by the current fiscal year’s actual property 3 tax dollars certified for levy under this subsection by the 4 remainder of the total assessed value used to calculate such 5 taxes for the budget year minus value attributable to new 6 valuation. 7 (b) (i) For purposes of this subparagraph, “budget 8 adjustment factor” is equal to one of the following, unless 9 modified by the general assembly on or before January 31 10 immediately preceding the applicable fiscal year: 11 (A) If the percentage change in the consumer price index for 12 all urban consumers is less than four, one hundred two percent. 13 (B) If the percentage change in the consumer price index for 14 all urban consumers is equal to or greater than four but less 15 than six, one hundred three percent. 16 (C) If the percentage change in the consumer price index for 17 all urban consumers is equal to or greater than six but less 18 than eight, one hundred four percent. 19 (D) If the percentage change in the consumer price index 20 for all urban consumers is equal to or greater than eight, one 21 hundred five percent. 22 (ii) The percentage change in the consumer price index for 23 all urban consumers shall be equal to one hundred multiplied 24 by the quotient of the remainder of the published value of the 25 consumer price index for all urban consumers for the month 26 ending eight months prior to the beginning of the applicable 27 budget year minus the published value of the consumer price 28 index for all urban consumers for the month ending twenty 29 months prior to the beginning of the applicable budget year 30 divided by the published value of the consumer price index for 31 all urban consumers for the month ending twenty months prior to 32 the beginning of the applicable budget year. 33 (3) Notwithstanding other provisions of this paragraph, 34 if a city’s actual levy rate for the current fiscal year is 35 -8- LSB 5195SV (2) 91 md/jh 8/ 117

S.F. 2472 zero dollars per one thousand dollars of assessed value, the 1 city’s levy rate under this subsection shall not exceed a levy 2 rate per one thousand dollars of assessed value equal to one 3 thousand multiplied by the quotient of one hundred two percent 4 of the city’s certified general fund budget for the current 5 fiscal year divided by the remainder of the total assessed 6 value used to calculate taxes for the budget year minus value 7 attributable to new valuation. 8 Sec. 13. Section 384.1, subsection 4, Code 2026, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . c. “New valuation” means the increase 11 from the current fiscal year to the budget year in taxable 12 valuation, as shown on the assessment roll due to the 13 following, the amount of each as reported under section 331.510 14 by the county auditor to the department of management: 15 (1) New construction. 16 (2) Additions or improvements to existing structures that 17 are not normal and necessary repairs under section 441.21, 18 subsection 8. 19 (3) Net boundary adjustments, including annexation, 20 severance, incorporation, consolidation, or discontinuance as 21 those terms are defined in section 368.1. 22 Sec. 14. EFFECTIVE DATE. This division of this Act takes 23 effect January 1, 2027. 24 Sec. 15. APPLICABILITY. This division of this Act applies 25 to property taxes and budgets for fiscal years beginning on or 26 after July 1, 2027. 27 DIVISION III 28 SCHOOL TAXES AND BUDGETS 29 Sec. 16. Section 257.1, subsection 2, paragraph b, Code 30 2026, is amended to read as follows: 31 b. (1) (a) For the budget year commencing July 1, 1999, 32 and for each succeeding budget year beginning before July 33 1, 2022, the regular program foundation base per pupil is 34 eighty-seven and five-tenths percent of the regular program 35 -9- LSB 5195SV (2) 91 md/jh 9/ 117

S.F. 2472 state cost per pupil. 1 (b) For the budget year commencing July 1, 2022, and for 2 each succeeding budget year beginning before July 1, 2027 , 3 the regular program foundation base per pupil is eighty-eight 4 and four-tenths percent of the regular program state cost per 5 pupil. 6 (c) For the budget year commencing July 1, 2027, and each 7 succeeding budget year, the regular program foundation base per 8 pupil is one hundred percent of the regular program state cost 9 per pupil. 10 (2) For the budget year commencing July 1, 1991, and for 11 each succeeding budget year the special education support 12 services foundation base is seventy-nine percent of the special 13 education support services state cost per pupil. 14 (3) The combined foundation base is the sum of the regular 15 program foundation base, the special education support services 16 foundation base, the total teacher salary supplement district 17 cost, the total professional development supplement district 18 cost, the total early intervention supplement district cost, 19 the total teacher leadership supplement district cost, and the 20 total area education agency teacher salary supplement district 21 cost. 22 Sec. 17. Section 257.3, subsection 1, paragraph a, Code 23 2026, is amended to read as follows: 24 a. (1) Except as provided in subsections 2 and 3 , a school 25 district shall cause to be levied each budget year beginning 26 before July 1, 2027 , for the school general fund, a foundation 27 property tax equal to five dollars and forty cents per thousand 28 dollars of assessed valuation on all taxable property in the 29 district. The county auditor shall spread the foundation levy 30 over all taxable property in the district. 31 (2) Except as provided in subsections 2 and 3, a school 32 district shall cause to be levied for the budget year beginning 33 July 1, 2027, and each succeeding budget year, for the school 34 general fund, a foundation property tax equal to four dollars 35 -10- LSB 5195SV (2) 91 md/jh 10/ 117

S.F. 2472 and forty-eight and six hundred sixty-two one-thousandths cents 1 per thousand dollars of assessed valuation on all taxable 2 property in the district. The county auditor shall spread the 3 foundation levy over all taxable property in the district. 4 Sec. 18. Section 257.3, subsection 2, paragraphs a and b, 5 Code 2026, are amended to read as follows: 6 a. Notwithstanding subsection 1, a reorganized school 7 district for which the reorganization takes effect on or after 8 July 1, 2027, shall cause a foundation property tax of four 9 three dollars and forty sixty-six cents per thousand dollars of 10 assessed valuation to be levied on all taxable property which, 11 in the year preceding a reorganization, was within a school 12 district affected by the reorganization as defined in section 13 275.1, or in the year preceding a dissolution was a part of a 14 school district that dissolved if the dissolution proposal has 15 been approved by the director of the department of education 16 pursuant to section 275.55. 17 b. In For a reorganized school district for which the 18 reorganization took effect on or after July 1, 2027, in 19 succeeding school years, the foundation property tax levy on 20 that portion shall be increased to the rate of four dollars and 21 ninety seven cents per thousand dollars of assessed valuation 22 the first succeeding year, five four dollars and fifteen 23 twenty-eight cents per thousand dollars of assessed valuation 24 the second succeeding year, and five four dollars and forty 25 forty-eight and six hundred sixty-two one-thousandths cents per 26 thousand dollars of assessed valuation the third succeeding 27 year and each year thereafter under subsection 1, paragraph “a” . 28 Sec. 19. Section 257.4, subsection 1, paragraph b, Code 29 2026, is amended to read as follows: 30 b. For the budget year beginning July 1, 2008, and 31 succeeding budget years beginning before July 1, 2027 , the 32 department of management shall annually determine an adjusted 33 additional property tax levy and a statewide maximum adjusted 34 additional property tax levy rate, not to exceed the statewide 35 -11- LSB 5195SV (2) 91 md/jh 11/ 117

S.F. 2472 average additional property tax levy rate, calculated by 1 dividing the total adjusted additional property tax levy 2 dollars statewide by the statewide total net taxable valuation. 3 For purposes of this paragraph, the adjusted additional 4 property tax levy shall be that portion of the additional 5 property tax levy corresponding to the state cost per pupil 6 multiplied by a school district’s weighted enrollment, and then 7 multiplied by one hundred percent less the regular program 8 foundation base per pupil percentage pursuant to section 9 257.1 , and then reduced by the amount of the property tax 10 replacement payment to be received under section 257.16B and 11 the amount of the foundation base supplement payment to be 12 received under section 257.16D . The district shall receive 13 adjusted additional property tax levy aid in an amount equal 14 to the difference between the adjusted additional property 15 tax levy rate and the statewide maximum adjusted additional 16 property tax levy rate, as applied per thousand dollars of 17 assessed valuation on all taxable property in the district. 18 The statewide maximum adjusted additional property tax levy 19 rate shall be annually determined by the department taking 20 into account amounts allocated pursuant to section 257.15, 21 subsection 4 , and the balance of the property tax equity and 22 relief fund created in section 257.16A at the end of the 23 calendar year. 24 Sec. 20. Section 257.4, subsection 2, Code 2026, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . c. This subsection applies to budget years 27 beginning before July 1, 2027. 28 Sec. 21. Section 257.15, subsections 2 and 3, Code 2026, are 29 amended to read as follows: 30 2. Property tax adjustment aid for 1992-1993 and succeeding 31 years beginning before 2027-2028 . For the budget year beginning 32 July 1, 1992, and succeeding budget years beginning before July 33 1, 2027 , the department of education shall pay property tax 34 adjustment aid to a school district equal to the amount paid 35 -12- LSB 5195SV (2) 91 md/jh 12/ 117

S.F. 2472 to the district for the base year less an amount equal to the 1 product of the percent by which the taxable valuation in the 2 district increased, if the taxable valuation increased, from 3 January 1 of the year prior to the base year to January 1 of the 4 base year and the property tax adjustment aid. The department 5 of management shall adjust the rate of the additional property 6 tax accordingly and notify the department of education of 7 the amount of aid to be paid to each district from moneys 8 appropriated for property tax adjustment aid. 9 3. Property tax adjustment aid appropriation. There 10 is appropriated from the general fund of the state to the 11 department of education, for each fiscal year beginning 12 before July 1, 2027 , an amount necessary to pay property 13 tax adjustment aid to school districts under this section . 14 Property tax adjustment aid shall be paid to school districts 15 in the manner provided in section 257.16 . 16 Sec. 22. Section 257.15, subsection 4, paragraph a, 17 subparagraph (1), subparagraph division (d), Code 2026, is 18 amended to read as follows: 19 (d) For the budget year beginning July 1, 2009, and 20 succeeding budget years beginning before July 1, 2027 , 21 twenty-four million dollars. 22 Sec. 23. Section 257.15, subsection 4, paragraph b, Code 23 2026, is amended to read as follows: 24 b. After For fiscal years beginning before July 1, 2026, 25 after lowering all school district adjusted additional property 26 tax levy rates to the statewide maximum adjusted additional 27 property tax levy rate under paragraph “a” , the department of 28 management shall use any remaining funds at the end of the 29 calendar year to further lower additional property taxes by 30 increasing for the budget year beginning the following July 31 1, the regular program foundation base per pupil percentage 32 under section 257.1 . Moneys used pursuant to this paragraph 33 shall supplant an equal amount of the appropriation made from 34 the general fund of the state pursuant to section 257.16 that 35 -13- LSB 5195SV (2) 91 md/jh 13/ 117

S.F. 2472 represents the increase in state foundation aid. Any moneys 1 remaining at the conclusion of the fiscal year beginning July 2 1, 2025, shall be transferred by the department of management 3 for deposit in the general fund of the state. 4 Sec. 24. Section 257.16A, subsections 2 and 3, Code 2026, 5 are amended to read as follows: 6 2. There For each fiscal year beginning before July 1, 7 2027, there is appropriated annually all moneys in the fund to 8 the department of management for purposes of section 257.15, 9 subsection 4 . 10 3. Notwithstanding section 8.33 , any moneys remaining in 11 the property tax equity and relief fund at the end of a fiscal 12 year shall not revert to any other fund but shall remain in the 13 property tax equity and relief fund for use as provided in this 14 section for the following fiscal year. However, at the end of 15 the fiscal year beginning July 1, 2026, any moneys remaining in 16 the property tax equity and relief fund shall be transferred 17 for deposit into either the secure an advanced vision for 18 education fund or the general fund of the state based on the 19 fund from which the moneys were received. 20 Sec. 25. Section 257.16B, subsection 1, Code 2026, is 21 amended to read as follows: 22 1. For each fiscal year beginning on or after July 1, 2023, 23 but before July 1, 2027, there is appropriated from the general 24 fund of the state to the department of education an amount 25 necessary to make all school district property tax replacement 26 payments under this section , as calculated in subsection 2 . 27 Sec. 26. Section 257.16D, subsection 2, paragraph a, Code 28 2026, is amended to read as follows: 29 a. There For fiscal years beginning before July 1, 2027, 30 there is appropriated annually from the fund to the department 31 of management an amount necessary to make all foundation base 32 supplement payments under this section . The department of 33 management shall calculate each school district’s foundation 34 base supplement payment based on the distribution methodology 35 -14- LSB 5195SV (2) 91 md/jh 14/ 117

S.F. 2472 under paragraph “b” . 1 Sec. 27. Section 257.16D, subsection 3, Code 2026, is 2 amended to read as follows: 3 3. Notwithstanding section 8.33 , any moneys remaining in 4 the foundation base supplement fund at the end of a fiscal year 5 shall not revert to any other fund but shall remain in the 6 foundation base supplement fund for use as provided in this 7 section for the following fiscal year. However, at the end of 8 the fiscal year beginning July 1, 2026, any moneys remaining in 9 the foundation base supplement fund shall be transferred for 10 deposit in the secure an advanced vision for education fund. 11 Sec. 28. Section 257.31, Code 2026, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 19. a. The board of directors of each 14 school district with an unexpended fund balance in the 15 district’s management levy fund under section 298A.3 at the 16 conclusion of the fiscal year beginning July 1, 2025, that 17 exceeds an amount equal to the total expenditures from the 18 district’s management levy fund for the fiscal year beginning 19 July 1, 2025, shall certify such unexpended fund balance and 20 expenditure amounts, including any reserved or designated 21 amounts in the fund and the purposes therefor, to the school 22 budget review committee by November 15, 2026. The committee 23 shall prescribe the form for such certifications. 24 b. The committee shall conduct a review of the unexpended 25 fund balances and expenditures of school district management 26 levy funds certified under paragraph “a” . The committee 27 shall consult with boards of directors of school districts 28 and other relevant persons to determine the appropriateness 29 of establishing district management levy fund unexpended fund 30 balance limitations. By February 1, 2027, the committee 31 shall make recommendations to the general assembly for 32 establishing district management levy fund unexpended fund 33 balance limitations for fiscal years beginning on or after July 34 1, 2028, including recommendations for limitations based on a 35 -15- LSB 5195SV (2) 91 md/jh 15/ 117

S.F. 2472 percentage of the district’s management levy fund expenditures 1 and recommendations for management levy limitations and 2 expenditure requirements for excess funds. 3 Sec. 29. Section 298.2, subsection 1, Code 2026, is amended 4 to read as follows: 5 1. a. A physical plant and equipment levy of not exceeding 6 one dollar and sixty-seven eighteen cents per thousand dollars 7 of assessed valuation in the district is established except 8 as otherwise provided in this subsection . The physical plant 9 and equipment levy consists of the regular physical plant and 10 equipment levy of not exceeding thirty-three twenty-four cents 11 per thousand dollars of assessed valuation in the district 12 and a voter-approved physical plant and equipment levy of 13 not exceeding one dollar and thirty-four ninety-four cents 14 per thousand dollars of assessed valuation in the district. 15 However, the voter-approved physical plant and equipment levy 16 may consist of a combination of a physical plant and equipment 17 property tax levy and a physical plant and equipment income 18 surtax as provided in subsection 4 with the maximum amount 19 levied and imposed limited to an amount that could be raised 20 by a one dollar and thirty-four ninety-four cent property tax 21 levy. A voter-approved physical plant and equipment levy 22 approved prior to the effective date of this division of this 23 Act shall not exceed a rate that is seventy percent of the rate 24 approved at election. 25 b. For school budget years beginning on or after July 1, 26 2015 2027 , a school district may by resolution of the board of 27 directors adopted prior to April 30 preceding the budget year 28 impose a physical plant and equipment levy at a rate in excess 29 of the levy rate limitations under paragraph “a” if the board 30 has refunded or refinanced a loan agreement entered into under 31 section 297.36 and such refunding or refinancing complies with 32 the maturity period authorized under section 297.36, subsection 33 1 , paragraph “c” , and results in a lower amount of interest on 34 the amount of the loan agreement. However, the rate imposed 35 -16- LSB 5195SV (2) 91 md/jh 16/ 117

S.F. 2472 by a school district under this paragraph shall not exceed the 1 rate imposed during the budget year in which the loan agreement 2 was refunded or refinanced or seventy percent of such levy 3 rate if the refunding or refinancing occurred in the budget 4 year beginning July 1, 2026 . Authorization to exceed the levy 5 rate limitations of paragraph “a” shall terminate upon the 6 maturity of the loan agreement after refunding or refinancing. 7 Upon adoption of the resolution under this paragraph “b” , the 8 board shall comply with the requirements of section 297.36, 9 subsection 1 , paragraph “b” . 10 Sec. 30. Section 298.2, subsection 2, Code 2026, is amended 11 by striking the subsection. 12 Sec. 31. Section 298.4, subsection 1, unnumbered paragraph 13 1, Code 2026, is amended to read as follows: 14 The Unless prohibited by subsection 1A, paragraph “a” , the 15 board of directors of a school district may certify for levy by 16 April 30 of a school year, a tax on all taxable property in the 17 school district for a district management levy , subject to the 18 limitations in subsection 1A, paragraph “b” . The revenue from 19 the tax levied in this section shall be placed in the district 20 management levy fund of the school district. The district 21 management levy shall be expended only for the following 22 purposes: 23 Sec. 32. Section 298.4, Code 2026, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 1A. a. (1) For the fiscal year beginning 26 July 1, 2028, if a school district’s unexpended fund balance, 27 as defined in section 257.2, of the district’s management levy 28 fund is equal to or exceeds one hundred eighty percent of the 29 average annual expenditures from the district’s management 30 levy fund for the three consecutive fiscal years immediately 31 preceding the base year, the board of directors shall not 32 certify a levy under this section for the fiscal year. 33 (2) For the fiscal year beginning July 1, 2029, if a school 34 district’s unexpended fund balance, as defined in section 35 -17- LSB 5195SV (2) 91 md/jh 17/ 117

S.F. 2472 257.2, of the district’s management levy fund is equal to or 1 exceeds one hundred seventy-five percent of the average annual 2 expenditures from the district’s management levy fund for the 3 three consecutive fiscal years immediately preceding the base 4 year, the board of directors shall not certify a levy under 5 this section for the fiscal year. 6 (3) For the fiscal year beginning July 1, 2030, if a school 7 district’s unexpended fund balance, as defined in section 8 257.2, of the district’s management levy fund is equal to or 9 exceeds one hundred seventy percent of the average annual 10 expenditures from the district’s management levy fund for the 11 three consecutive fiscal years immediately preceding the base 12 year, the board of directors shall not certify a levy under 13 this section for the fiscal year. 14 (4) For the fiscal year beginning July 1, 2031, if a school 15 district’s unexpended fund balance, as defined in section 16 257.2, of the district’s management levy fund is equal to or 17 exceeds one hundred sixty-five percent of the average annual 18 expenditures from the district’s management levy fund for the 19 three consecutive fiscal years immediately preceding the base 20 year, the board of directors shall not certify a levy under 21 this section for the fiscal year. 22 (5) For the fiscal year beginning July 1, 2032, and each 23 succeeding fiscal year, if a school district’s unexpended 24 fund balance, as defined in section 257.2, of the district’s 25 management levy fund is equal to or exceeds one hundred sixty 26 percent of the average annual expenditures from the district’s 27 management levy fund for the three consecutive fiscal years 28 immediately preceding the base year, the board of directors 29 shall not certify a levy under this section for the fiscal 30 year. 31 b. (1) For the fiscal year beginning July 1, 2028, if 32 a school district is not prohibited from certifying a levy 33 pursuant to paragraph “a” , the maximum amount that the board of 34 directors may certify for levy under this section shall be an 35 -18- LSB 5195SV (2) 91 md/jh 18/ 117

S.F. 2472 amount equal to the remainder of one hundred eighty percent of 1 the average annual expenditures from the district’s management 2 levy fund for the three consecutive fiscal years immediately 3 preceding the base year minus the district’s management levy 4 fund unexpended fund balance for the fiscal year preceding the 5 base year. 6 (2) For the fiscal year beginning July 1, 2029, if a school 7 district is not prohibited from certifying a levy pursuant to 8 paragraph “a” , the maximum amount that the board of directors 9 may certify for levy under this section shall be an amount 10 equal to the remainder of one hundred seventy-five percent of 11 the average annual expenditures from the district’s management 12 levy fund for the three consecutive fiscal years immediately 13 preceding the base year minus the district’s management levy 14 fund unexpended fund balance for the fiscal year preceding the 15 base year. 16 (3) For the fiscal year beginning July 1, 2030, if a school 17 district is not prohibited from certifying a levy pursuant to 18 paragraph “a” , the maximum amount that the board of directors 19 may certify for levy under this section shall be an amount 20 equal to the remainder of one hundred seventy percent of the 21 average annual expenditures from the district’s management 22 levy fund for the three consecutive fiscal years immediately 23 preceding the base year minus the district’s management levy 24 fund unexpended fund balance for the fiscal year preceding the 25 base year. 26 (4) For the fiscal year beginning July 1, 2031, if a school 27 district is not prohibited from certifying a levy pursuant to 28 paragraph “a” , the maximum amount that the board of directors 29 may certify for levy under this section shall be an amount 30 equal to the remainder of one hundred sixty-five percent of 31 the average annual expenditures from the district’s management 32 levy fund for the three consecutive fiscal years immediately 33 preceding the base year minus the district’s management levy 34 fund unexpended fund balance for the fiscal year preceding the 35 -19- LSB 5195SV (2) 91 md/jh 19/ 117

S.F. 2472 base year. 1 (5) For the fiscal year beginning July 1, 2032, and each 2 succeeding fiscal year, if a school district is not prohibited 3 from certifying a levy pursuant to paragraph “a” , the maximum 4 amount that the board of directors may certify for levy under 5 this section shall be an amount equal to the remainder of one 6 hundred sixty percent of the average annual expenditures from 7 the district’s management levy fund for the three consecutive 8 fiscal years immediately preceding the base year minus the 9 district’s management levy fund unexpended fund balance for the 10 fiscal year preceding the base year. 11 Sec. 33. Section 298.18, subsection 1, paragraph d, Code 12 2026, is amended to read as follows: 13 d. (1) The amount estimated and certified to apply on 14 principal and interest for any one year may exceed two dollars 15 and seventy one dollar and eighty-nine cents per thousand 16 dollars of assessed value by the amount approved by the voters 17 of the school corporation, but not exceeding four two dollars 18 and five eighty-four cents per thousand dollars of the assessed 19 value of the taxable property within any school corporation, 20 provided that the registered voters of such school corporation 21 have first approved such increased amount at an election held 22 on a date specified in section 39.2, subsection 4 , paragraph 23 “c” . Amounts approved at election before the effective date 24 of this division of this Act shall not exceed a rate that is 25 seventy percent of the rate approved at election. 26 (2) The levy rate limitations under this paragraph shall 27 not apply to the payment of general obligation bonds approved 28 for issuance at an election held on or before November 4, 2025, 29 that are sold on or after May 1, 2026, and the payment of such 30 bonds shall be subject to the levy rate limitations under 31 section 298.18, subsection 1, paragraph “d” , Code 2026. 32 Sec. 34. Section 423F.2, subsection 3, paragraph b, 33 subparagraph (1), Code 2026, is amended to read as follows: 34 (1) Prior to distribution of moneys in the secure an 35 -20- LSB 5195SV (2) 91 md/jh 20/ 117

S.F. 2472 advanced vision for education fund to school districts, an 1 amount equal to the equity transfer amount for the fiscal year 2 minus the foundation base transfer amount for the fiscal year 3 shall be distributed and credited to the property tax equity 4 and relief fund created in section 257.16A , an amount equal 5 to the foundation base transfer amount shall be distributed 6 and credited to the foundation base supplement fund created 7 in section 257.16D , general fund of the state to be used for 8 foundation aid resulting from the increase in the regular 9 program foundation base per pupil to one hundred percent of the 10 regular program state cost per pupil and an amount equal to 11 the career academy transfer amount for the fiscal year shall 12 be distributed and credited to the career academy fund created 13 in section 257.51 . 14 Sec. 35. Section 423F.2, subsection 3, paragraph b, 15 subparagraph (3), Code 2026, is amended by striking the 16 subparagraph. 17 Sec. 36. Section 423F.3, subsection 1, paragraph a, Code 18 2026, is amended to read as follows: 19 a. Reduction of the bond levies levy under sections section 20 298.18 and 298.18A and all other debt levies. 21 Sec. 37. Section 425A.3, subsection 1, Code 2026, is amended 22 to read as follows: 23 1. The family farm tax credit fund shall be apportioned 24 each year in the manner provided in this chapter so as to give 25 a credit against the tax on each eligible tract of agricultural 26 land within the several school districts of the state in which 27 the levy for the general school fund exceeds five dollars and 28 forty cents per thousand dollars of assessed value the levy 29 rate under section 257.3, subsection 1, paragraph “a” . The 30 amount of the credit on each eligible tract of agricultural 31 land shall be the amount the tax levied for the general school 32 fund exceeds the amount of tax which would be levied on each 33 eligible tract of agricultural land were the levy for the 34 general school fund five dollars and forty cents per thousand 35 -21- LSB 5195SV (2) 91 md/jh 21/ 117

S.F. 2472 dollars of assessed value the levy rate under section 257.3, 1 subsection 1, paragraph “a” , for the previous year. However, 2 in the case of a deficiency in the family farm tax credit fund 3 to pay the credits in full, the credit on each eligible tract 4 of agricultural land in the state shall be proportionate and 5 applied as provided in this chapter . 6 Sec. 38. Section 425A.5, Code 2026, is amended to read as 7 follows: 8 425A.5 Computation by county auditor. 9 The family farm tax credit allowed each year shall be 10 computed as follows: On or before April 1, the county auditor 11 shall list by school districts all tracts of agricultural 12 land which are entitled to credit, the taxable value for the 13 previous year, the budget from each school district for the 14 previous year, and the tax rate determined for the general 15 fund of the school district in the manner prescribed in 16 section 444.3 for the previous year, and if the tax rate is in 17 excess of five dollars and forty cents per thousand dollars of 18 assessed value the levy rate under section 257.3, subsection 19 1, paragraph “a” , the auditor shall multiply the tax levy which 20 is in excess of five dollars and forty cents per thousand 21 dollars of assessed value the levy rate under section 257.3, 22 subsection 1, paragraph “a” , by the total taxable value of the 23 agricultural land entitled to credit in the school district, 24 and on or before April 1, certify the total amount of credit 25 and the total number of acres entitled to the credit to the 26 department of revenue. 27 Sec. 39. Section 426.3, Code 2026, is amended to read as 28 follows: 29 426.3 Where credit given. 30 The agricultural land credit fund shall be apportioned each 31 year in the manner hereinafter provided so as to give a credit 32 against the tax on each tract of agricultural lands within the 33 several school districts of the state in which the levy for 34 the general school fund exceeds five dollars and forty cents 35 -22- LSB 5195SV (2) 91 md/jh 22/ 117

S.F. 2472 per thousand dollars of assessed value the levy rate under 1 section 257.3, subsection 1, paragraph “a” ; the amount of such 2 credit on each tract of such lands shall be the amount the tax 3 levied for the general school fund exceeds the amount of tax 4 which would be levied on said tract of such lands were the 5 levy for the general school fund five dollars and forty cents 6 per thousand dollars of assessed value the levy rate under 7 section 257.3, subsection 1, paragraph “a” , for the previous 8 year, except in the case of a deficiency in the agricultural 9 land credit fund to pay said credits in full, in which case the 10 credit on each eligible tract of such lands in the state shall 11 be proportionate and shall be applied as hereinafter provided. 12 Sec. 40. Section 426.6, subsection 1, Code 2026, is amended 13 to read as follows: 14 1. The agricultural land tax credit allowed each year 15 shall be computed as follows: On or before April 1, the 16 county auditor shall list by school districts all tracts of 17 agricultural lands which are entitled to credit, together with 18 the taxable value for the previous year, together with the 19 budget from each school district for the previous year, and the 20 tax rate determined for the general fund of the district in 21 the manner prescribed in section 444.3 for the previous year, 22 and if such tax rate is in excess of five dollars and forty 23 cents per thousand dollars of assessed value the levy rate 24 under section 257.3, subsection 1, paragraph “a” , the auditor 25 shall multiply the tax levy which is in excess of five dollars 26 and forty cents per thousand dollars of assessed value the 27 levy rate under section 257.3, subsection 1, paragraph “a” , by 28 the total taxable value of the agricultural lands entitled to 29 credit in the district, and on or before April 1, certify the 30 amount to the department of revenue. 31 Sec. 41. REPEAL. Section 298.18A, Code 2026, is repealed. 32 Sec. 42. ADJUSTMENT OF CALCULATIONS. For property tax 33 credits under chapters 425A and 426 for property taxes due and 34 payable in the fiscal year beginning July 1, 2027, the tax rate 35 -23- LSB 5195SV (2) 91 md/jh 23/ 117

S.F. 2472 determined for the general fund of the school district in the 1 manner prescribed in section 444.3 for the previous year shall 2 be determined using the appropriate property tax levy rate 3 under section 257.3, as amended in this division of this Act. 4 Sec. 43. EFFECTIVE DATE. Except for the section of this 5 division of this Act amending section 257.31, this division of 6 this Act takes effect January 1, 2027. 7 Sec. 44. APPLICABILITY. Except for the section of this 8 division of this Act amending section 257.31, this division 9 of this Act applies to fiscal years and school budget years 10 beginning on or after July 1, 2027. 11 DIVISION IV 12 PROPERTY CLASSIFICATIONS, VALUATIONS, AND ASSESSMENT 13 LIMITATIONS 14 Sec. 45. Section 386.8, Code 2026, is amended to read as 15 follows: 16 386.8 Operation tax. 17 A city may establish a self-supported improvement district 18 operation fund, and may certify taxes not to exceed the 19 rate limitation as established in the ordinance creating the 20 district, or any amendment thereto, each year to be levied 21 for the fund against all of the property in the district, 22 for the purpose of paying the administrative expenses of 23 the district, which may include but are not limited to 24 administrative personnel salaries, a separate administrative 25 office, planning costs including consultation fees, engineering 26 fees, architectural fees, and legal fees and all other expenses 27 reasonably associated with the administration of the district 28 and the fulfilling of the purposes of the district. The taxes 29 levied for this fund may also be used for the purpose of paying 30 maintenance expenses of improvements or self-liquidating 31 improvements for a specified length of time with one or more 32 options to renew if such is clearly stated in the petition 33 which requests the council to authorize construction of the 34 improvement or self-liquidating improvement, whether or not 35 -24- LSB 5195SV (2) 91 md/jh 24/ 117

S.F. 2472 such petition is combined with the petition requesting creation 1 of a district. Parcels of property which are assessed as 2 residential property for property tax purposes are exempt from 3 the tax levied under this section except residential properties 4 within a duly designated historic district or property 5 classified as residential multiresidential property under 6 section 441.21, subsection 14 13 , paragraph “a” , subparagraph 7 (6) (5) . A tax levied under this section is not subject to the 8 levy limitation in section 384.1 . 9 Sec. 46. Section 386.9, Code 2026, is amended to read as 10 follows: 11 386.9 Capital improvement tax. 12 A city may establish a capital improvement fund for a 13 district and may certify taxes, not to exceed the rate 14 established by the ordinance creating the district, or any 15 subsequent amendment thereto, each year to be levied for 16 the fund against all of the property in the district, for 17 the purpose of accumulating moneys for the financing or 18 payment of a part or all of the costs of any improvement or 19 self-liquidating improvement. However, parcels of property 20 which are assessed as residential property for property tax 21 purposes are exempt from the tax levied under this section 22 except residential properties within a duly designated historic 23 district or property classified as residential multiresidential 24 property under section 441.21, subsection 14 13 , paragraph “a” , 25 subparagraph (6) (5) . A tax levied under this section is not 26 subject to the levy limitations in section 384.1 or 384.7 . 27 Sec. 47. Section 386.10, Code 2026, is amended to read as 28 follows: 29 386.10 Debt service tax. 30 A city shall establish a self-supported municipal 31 improvement district debt service fund whenever any 32 self-supported municipal improvement district bonds are issued 33 and outstanding, other than revenue bonds, and shall certify 34 taxes to be levied against all of the property in the district 35 -25- LSB 5195SV (2) 91 md/jh 25/ 117

S.F. 2472 for the debt service fund in the amount necessary to pay 1 interest as it becomes due and the amount necessary to pay, 2 or to create a sinking fund to pay, the principal at maturity 3 of all self-supported municipal improvement district bonds as 4 authorized in section 386.11 , issued by the city. However, 5 parcels of property which are assessed as residential property 6 for property tax purposes at the time of the issuance of the 7 bonds are exempt from the tax levied under this section until 8 the parcels are no longer assessed as residential property 9 or until the residential properties are designated as a part 10 of a historic district or property classified as residential 11 multiresidential property under section 441.21, subsection 14 12 13 , paragraph “a” , subparagraph (6) (5) . 13 Sec. 48. Section 404.2, subsection 2, paragraph f, Code 14 2026, is amended to read as follows: 15 f. A statement specifying whether the revitalization is 16 applicable to none, some, or all of the property assessed as 17 residential, multiresidential, agricultural, commercial, or 18 industrial property within the designated area or a combination 19 thereof and whether the revitalization is for rehabilitation 20 and additions to existing buildings or new construction or 21 both. If revitalization is made applicable only to some 22 property within an assessment classification, the definition of 23 that subset of eligible property must be by uniform criteria 24 which further some planning objective identified in the plan. 25 The city shall state how long it is estimated that the area 26 shall remain a designated revitalization area which time 27 shall be longer than one year from the date of designation 28 and shall state any plan by the city to issue revenue bonds 29 for revitalization projects within the area. For a county, 30 a revitalization area shall include only property which 31 will be used as industrial property, commercial property, 32 multiresidential property, or residential property. However, a 33 county shall not provide a tax exemption under this chapter to 34 commercial property , multiresidential property, or residential 35 -26- LSB 5195SV (2) 91 md/jh 26/ 117

S.F. 2472 property which is located within the limits of a city. 1 Sec. 49. Section 404.3, subsection 4, paragraph a, Code 2 2026, is amended by striking the paragraph and inserting in 3 lieu thereof the following: 4 a. All qualified real estate assessed as any of the 5 following is eligible to receive a one hundred percent 6 exemption from taxation on the actual value added by the 7 improvements: 8 (1) Residential property. 9 (2) Commercial property if the commercial property 10 consists of three or more separate living quarters with at 11 least seventy-five percent of the space used for residential 12 purposes. 13 (3) Multiresidential property if the multiresidential 14 property consists of three or more separate living quarters 15 with at least seventy-five percent of the space used for 16 residential purposes. 17 Sec. 50. Section 404.3A, Code 2026, is amended to read as 18 follows: 19 404.3A Residential development area exemption. 20 Notwithstanding the schedules provided for in section 404.3 , 21 all qualified real estate assessed as residential property or 22 multiresidential property , excluding property classified as 23 residential multiresidential property under section 441.21, 24 subsection 14 13 , paragraph “a” , subparagraph (6) (5) , in an 25 area designated under section 404.1, subsection 5 , is eligible 26 to receive an exemption from taxation on the first seventy-five 27 thousand dollars of actual value added by the improvements. 28 The exemption is for a period of five years. 29 Sec. 51. Section 404.3D, Code 2026, is amended to read as 30 follows: 31 404.3D Exemptions for residential and multiresidential 32 property. 33 For revitalization areas established under this chapter 34 on or after July 1, 2024, and for first-year exemption 35 -27- LSB 5195SV (2) 91 md/jh 27/ 117

S.F. 2472 applications for property located in a revitalization area in 1 existence on July 1, 2024, filed on or after July 1, 2024, an 2 exemption authorized under this chapter for property that is 3 residential property or multiresidential property shall not 4 apply to property tax levies imposed by a school district. 5 Sec. 52. Section 441.21, subsection 1, paragraph b, 6 subparagraph (1), Code 2026, is amended to read as follows: 7 (1) The actual value of all property subject to assessment 8 and taxation shall be the fair and reasonable market value of 9 such property except as otherwise provided in this section . 10 “Market value” is defined as the fair and reasonable exchange 11 in the year in which the property is listed and valued between 12 a willing buyer and a willing seller, neither being under any 13 compulsion to buy or sell and each being familiar with all 14 the facts relating to the particular property. Sale prices 15 of the property or comparable property in normal transactions 16 reflecting market value, and the probable availability 17 or unavailability of persons interested in purchasing the 18 property, shall be taken into consideration in arriving at 19 its market value. In arriving at market value, sale prices 20 of property in abnormal transactions not reflecting market 21 value shall not be taken into account, or shall be adjusted to 22 eliminate the effect of factors which distort market value, 23 including but not limited to built-to-suit construction, 24 sale-leaseback transactions, leased fee sales, sales to 25 immediate family of the seller between related parties , 26 foreclosure or other forced sales, contract sales, discounted 27 purchase transactions or purchase of adjoining land or other 28 land to be operated as a unit. 29 Sec. 53. Section 441.21, subsection 1, paragraph e, Code 30 2026, is amended to read as follows: 31 e. The actual value of agricultural property shall be 32 determined on the basis of productivity and net earning 33 capacity of the property determined on the basis of its use for 34 agricultural purposes capitalized at a rate of seven percent 35 -28- LSB 5195SV (2) 91 md/jh 28/ 117

S.F. 2472 and applied uniformly among counties and among classes of 1 property. However, for assessment years beginning on or after 2 January 1, 2027, structures on agricultural land constructed on 3 or after January 1, 2027, that are not agricultural dwellings 4 shall not be included in determination of productivity and 5 net earning capacity of agricultural property and shall not 6 be allocated any portion of the total county productivity 7 value so determined. However, such structures shall be 8 treated similarly to agricultural structures constructed 9 before January 1, 2027, when applying any equalization 10 order of the department. Such agricultural structures shall 11 instead be valued according to the structure’s replacement 12 cost less depreciation and obsolescence and the structure’s 13 assessed value subject to taxation prior to application of any 14 assessment limitation under subsection 4 shall be equal to the 15 product of the structure’s value multiplied by the agricultural 16 factor, as determined in 701 IAC 102.3(2) or succeeding rule of 17 the department. Any formula or method employed to determine 18 productivity and net earning capacity of property shall be 19 adopted in full by rule. 20 Sec. 54. Section 441.21, subsection 2, Code 2026, is amended 21 to read as follows: 22 2. In the event market value of the property being assessed 23 cannot be readily established in the foregoing manner, then 24 the assessor may determine the value of the property using the 25 other uniform and recognized appraisal methods including its 26 productive and earning capacity, if any, industrial conditions, 27 its cost, physical and functional depreciation and obsolescence 28 and replacement cost, and all other factors which would assist 29 in determining the fair and reasonable market value of the 30 property but the actual value shall not be determined by use 31 of only one such factor. The following shall not be taken into 32 consideration: Special value or use value of the property to 33 its present owner, and the goodwill or value of a business 34 which uses the property as distinguished from the value of 35 -29- LSB 5195SV (2) 91 md/jh 29/ 117

S.F. 2472 the property as property. In addition, for assessment years 1 beginning on or after January 1, 2018, and unless otherwise 2 required for property valued by the department of revenue 3 pursuant to chapters 428 , 437 , and 438 , the assessor shall not 4 take into consideration and shall not request from any person 5 sales or receipts data, expense data, balance sheets, bank 6 account information, or other data related to the financial 7 condition of a business operating in whole or in part on the 8 property if the property is both classified as commercial or 9 industrial property and owned and used by the owner of the 10 business. However, in assessing property that is rented or 11 leased to low-income individuals and families as authorized by 12 section 42 of the Internal Revenue Code, as amended, and which 13 section limits the amount that the individual or family pays 14 for the rental or lease of units in the property, the assessor 15 shall, unless the owner elects to withdraw the property from 16 the assessment procedures for section 42 property, use the 17 productive and earning capacity from the actual rents received 18 as a method of appraisal and shall take into account the extent 19 to which that use and limitation reduces the market value of 20 the property. The assessor shall not consider any tax credit 21 equity or other subsidized financing as income provided to 22 the property in determining the assessed value. The property 23 owner shall notify the assessor when property is withdrawn 24 from section 42 eligibility under the Internal Revenue Code 25 or if the owner elects to withdraw the property from the 26 assessment procedures for section 42 property under this 27 subsection . The property shall not be subject to section 42 28 assessment procedures for the assessment year for which section 29 42 eligibility is withdrawn or an election is made. This 30 notification must be provided to the assessor no later than 31 March 1 of the assessment year or the owner will be subject to a 32 penalty of five hundred dollars for that assessment year. The 33 penalty shall be collected at the same time and in the same 34 manner as regular property taxes. An election to withdraw 35 -30- LSB 5195SV (2) 91 md/jh 30/ 117

S.F. 2472 from the assessment procedures for section 42 property is 1 irrevocable. Property that is withdrawn from the assessment 2 procedures for section 42 property shall be classified and 3 assessed as residential multiresidential property unless the 4 property otherwise fails to meet the requirements of subsection 5 14 13 . Upon adoption of uniform rules by the department of 6 revenue or succeeding authority covering assessments and 7 valuations of such properties, the valuation on such properties 8 shall be determined in accordance with such rules and in 9 accordance with forms and guidelines contained in the real 10 property appraisal manual prepared by the department as updated 11 from time to time for assessment purposes to assure uniformity, 12 but such rules, forms, and guidelines shall not be inconsistent 13 with or change the foregoing means of determining the actual, 14 market, taxable, and assessed values. 15 Sec. 55. Section 441.21, subsections 4 and 5, Code 2026, are 16 amended to read as follows: 17 4. For valuations established as of January 1, 1979 2026 , 18 the percentage of actual value at which agricultural and 19 residential property shall be assessed shall be the quotient of 20 the dividend and divisor as defined in this section determined 21 under this subsection . 22 a. (1) The percentage of actual value at which agricultural 23 property shall be assessed shall be the quotient of the 24 dividend and divisor as defined in this paragraph. The 25 dividend for each class of property shall be the dividend 26 as determined for each class of agricultural property 27 for valuations established as of January 1, 1978 2025 , as 28 determined under the applicable law for that assessment year, 29 adjusted by the product obtained by multiplying the percentage 30 determined for that year by the amount of any additions or 31 deletions to actual value, excluding those resulting from 32 the revaluation of existing properties, as reported by the 33 assessors on the abstracts of assessment for 1978 2025 , plus 34 six three percent of the amount so determined. 35 -31- LSB 5195SV (2) 91 md/jh 31/ 117

S.F. 2472 (2) However, if the difference between the dividend so 1 determined for either class of property and the dividend for 2 that class of property for valuations established as of January 3 1, 1978, adjusted by the product obtained by multiplying 4 the percentage determined for that year by the amount of 5 any additions or deletions to actual value, excluding those 6 resulting from the revaluation of existing properties, as 7 reported by the assessors on the abstracts of assessment for 8 1978, is less than six percent, the 1979 dividend for the other 9 class of property shall be the dividend as determined for that 10 class of property for valuations established as of January 11 1, 1978, adjusted by the product obtained by multiplying 12 the percentage determined for that year by the amount of 13 any additions or deletions to actual value, excluding those 14 resulting from the revaluation of existing properties, as 15 reported by the assessors on the abstracts of assessment for 16 1978, plus a percentage of the amount so determined which is 17 equal to the percentage by which the dividend as determined 18 for the other class of property for valuations established 19 as of January 1, 1978, adjusted by the product obtained by 20 multiplying the percentage determined for that year by the 21 amount of any additions or deletions to actual value, excluding 22 those resulting from the revaluation of existing properties, as 23 reported by the assessors on the abstracts of assessment for 24 1978, is increased in arriving at the 1979 dividend for the 25 other class of property. 26 (3) For valuations established for assessment years 27 beginning on or after January 1, 2022, the calculation of the 28 dividend for residential property under this subsection shall 29 exclude the value of all property described in subsection 14 , 30 paragraph “a” , subparagraphs (2), (3), (4), (5), and (6), 31 and the property described in subsection 14 , paragraph “a” , 32 subparagraph (7), that contains three or more separate dwelling 33 units. 34 b. (1) The divisor for each class of property shall be 35 -32- LSB 5195SV (2) 91 md/jh 32/ 117

S.F. 2472 the total actual value of all such agricultural property in 1 the state in the preceding year, as reported by the assessors 2 on the abstracts of assessment submitted for 1978 2025 , as 3 determined under the applicable law for that assessment year, 4 plus the amount of value added to said total actual value 5 by the revaluation of existing properties in 1979 2026 as 6 equalized by the director of revenue pursuant to section 7 441.49 . The director shall utilize information reported on 8 abstracts of assessment submitted pursuant to section 441.45 9 in determining such percentage. For valuations established as 10 of January 1, 2027, and each assessment year thereafter, the 11 percentage of actual value as equalized by the department of 12 revenue as provided in section 441.49 at which agricultural 13 property shall be assessed shall be calculated in accordance 14 with the methods provided in this paragraph. 15 (2) For valuations established for assessment years 16 beginning on or after January 1, 2022, the calculation of the 17 divisor for residential property under this subsection shall 18 exclude the value of all property described in subsection 14 , 19 paragraph “a” , subparagraphs (2), (3), (4), (5), and (6), 20 and the property described in subsection 14 , paragraph “a” , 21 subparagraph (7), that contains three or more separate dwelling 22 units. 23 c. (1) For valuations established as of January 1, 1980, 24 and each assessment year thereafter beginning before January 25 1, 2013, the percentage of actual value as equalized by the 26 director of revenue as provided in section 441.49 at which 27 agricultural and residential property shall be assessed shall 28 be calculated in accordance with the methods provided in 29 this subsection , including the limitation of increases in 30 agricultural and residential assessed values to the percentage 31 increase of the other class of property if the other class 32 increases less than the allowable limit adjusted to include 33 the applicable and current values as equalized by the director 34 of revenue, except that any references to six percent in this 35 -33- LSB 5195SV (2) 91 md/jh 33/ 117

S.F. 2472 subsection shall be four percent. 1 (2) For valuations established as of January 1, 2013, and 2 each assessment year thereafter, the percentage of actual 3 value as equalized by the department of revenue as provided in 4 section 441.49 at which agricultural and residential property 5 shall be assessed shall be calculated in accordance with the 6 methods provided in this subsection , including the limitation 7 of increases in agricultural and residential assessed values to 8 the percentage increase of the other class of property if the 9 other class increases less than the allowable limit adjusted 10 to include the applicable and current values as equalized by 11 the department of revenue, except that any references to six 12 percent in this subsection shall be three percent. 13 b. (1) For valuations established for the assessment year 14 beginning January 1, 2025, the percentage of actual value as 15 equalized by the department of revenue as provided in section 16 441.49 at which residential property shall be assessed shall 17 be forty-four and five thousand three hundred forty-five 18 ten-thousandths percent. 19 (2) For valuations established for the assessment year 20 beginning January 1, 2026, and the assessment year beginning 21 January 1, 2027, the percentage of actual value as equalized 22 by the department of revenue as provided in section 441.49 23 at which residential property shall be assessed shall be 24 seventy-two and one-half percent. 25 (3) For valuations established for the assessment year 26 beginning January 1, 2028, the percentage of actual value as 27 equalized by the department of revenue as provided in section 28 441.49 at which residential property shall be assessed shall be 29 seventy-five and one-fourth percent. 30 (4) For valuations established for the assessment year 31 beginning January 1, 2029, the percentage of actual value as 32 equalized by the department of revenue as provided in section 33 441.49 at which residential property shall be assessed shall be 34 seventy-eight percent. 35 -34- LSB 5195SV (2) 91 md/jh 34/ 117

S.F. 2472 (5) For valuations established for the assessment year 1 beginning January 1, 2030, the percentage of actual value as 2 equalized by the department of revenue as provided in section 3 441.49 at which residential property shall be assessed shall be 4 eighty and three-fourths percent. 5 (6) For valuations established for the assessment year 6 beginning January 1, 2031, the percentage of actual value as 7 equalized by the department of revenue as provided in section 8 441.49 at which residential property shall be assessed shall be 9 eighty-three and one-half percent. 10 (7) For valuations established for the assessment year 11 beginning January 1, 2032, the percentage of actual value as 12 equalized by the department of revenue as provided in section 13 441.49 at which residential property shall be assessed shall be 14 eighty-six and one-fourth percent. 15 (8) For valuations established for the assessment year 16 beginning January 1, 2033, the percentage of actual value as 17 equalized by the department of revenue as provided in section 18 441.49 at which residential property shall be assessed shall 19 be eighty-nine percent. 20 (9) For valuations established for the assessment year 21 beginning January 1, 2034, the percentage of actual value as 22 equalized by the department of revenue as provided in section 23 441.49 at which residential property shall be assessed shall be 24 ninety-one and three-fourths percent. 25 (10) For valuations established for the assessment year 26 beginning January 1, 2035, the percentage of actual value as 27 equalized by the department of revenue as provided in section 28 441.49 at which residential property shall be assessed shall be 29 ninety-four and one-half percent. 30 (11) For valuations established for the assessment year 31 beginning January 1, 2036, the percentage of actual value as 32 equalized by the department of revenue as provided in section 33 441.49 at which residential property shall be assessed shall be 34 ninety-seven and one-fourth percent. 35 -35- LSB 5195SV (2) 91 md/jh 35/ 117

S.F. 2472 (12) For valuations established for the assessment year 1 beginning January 1, 2037, and each assessment year thereafter, 2 the percentage of actual value as equalized by the department 3 of revenue as provided in section 441.49 at which residential 4 property shall be assessed shall be one hundred percent. 5 5. a. (1) For valuations established as of January 1, 6 1979, property valued by the department of revenue pursuant to 7 chapter 437 shall be considered as one class of property and 8 shall be assessed as a percentage of its actual value. The 9 percentage shall be determined by the director of revenue in 10 accordance with the provisions of this section . For valuations 11 established as of January 1, 1979, the percentage shall be 12 the quotient of the dividend and divisor as defined in this 13 section . The dividend shall be the total actual valuation 14 established for 1978 by the department of revenue, plus ten 15 percent of the amount so determined. The divisor for property 16 valued by the department of revenue pursuant to chapter 437 17 shall be the valuation established for 1978, plus the amount of 18 value added to the total actual value by the revaluation of the 19 property by the department of revenue as of January 1, 1979. 20 For valuations established as of January 1, 1980, property 21 valued by the department of revenue pursuant to chapter 437 22 shall be assessed at a percentage of its actual value. The 23 percentage shall be determined by the director of revenue in 24 accordance with the provisions of this section . For valuations 25 established as of January 1, 1980, the percentage shall be 26 the quotient of the dividend and divisor as defined in this 27 section . The dividend shall be the total actual valuation 28 established for 1979 by the department of revenue, plus eight 29 percent of the amount so determined. The divisor for property 30 valued by the department of revenue pursuant to chapter 437 31 shall be the valuation established for 1979, plus the amount of 32 value added to the total actual value by the revaluation of the 33 property by the department of revenue as of January 1, 1980. 34 For valuations established as of January 1, 1981, and each year 35 -36- LSB 5195SV (2) 91 md/jh 36/ 117

S.F. 2472 thereafter, the percentage of actual value at which property 1 valued by the department of revenue pursuant to chapter 437 2 shall be assessed shall be calculated in accordance with the 3 methods provided herein, except that any references to ten 4 percent in this subsection shall be eight percent. 5 (2) (1) For valuations established on or after January 1, 6 2013, property valued by the department of revenue pursuant to 7 chapter 434 shall be assessed at a portion of its actual value 8 determined in the same manner at which property assessed as 9 commercial property is assessed under paragraph “b” for the same 10 assessment year. 11 (3) (2) For valuations established for the assessment year 12 beginning January 1, 2025, the percentage of actual value at 13 which property valued by the department of revenue pursuant to 14 chapters 428 and 438 shall be assessed shall be ninety-eight 15 percent. 16 (4) (3) For valuations established for the assessment year 17 beginning January 1, 2026, and each assessment year thereafter, 18 the percentage of actual value at which property valued by the 19 department of revenue pursuant to chapters 428 , 437, and 438 20 shall be assessed shall be ninety-six one hundred percent. 21 (5) For valuations established for the assessment year 22 beginning January 1, 2027, the percentage of actual value at 23 which property valued by the department of revenue pursuant to 24 chapters 428 and 438 shall be assessed shall be ninety-four 25 percent. 26 (6) For valuations established for the assessment year 27 beginning January 1, 2028, the percentage of actual value at 28 which property valued by the department of revenue pursuant 29 to chapters 428 and 438 shall be assessed shall be ninety-two 30 percent. 31 (7) For valuations established on or after January 1, 2029, 32 the percentage of actual value at which property valued by the 33 department of revenue pursuant to chapters 428 and 438 shall be 34 assessed shall be ninety percent. 35 -37- LSB 5195SV (2) 91 md/jh 37/ 117

S.F. 2472 b. For valuations established on or after January 1, 2013, 1 commercial Commercial property, excluding properties referred 2 to in section 427A.1, subsection 9 , shall be assessed at a 3 portion of its actual value, as determined in this paragraph 4 “b” . 5 (1) For valuations established for the assessment year 6 beginning January 1, 2013, the percentage of actual value 7 as equalized by the department of revenue as provided in 8 section 441.49 at which commercial property shall be assessed 9 shall be ninety-five percent. For valuations established 10 for the assessment year beginning January 1, 2014, and each 11 assessment year thereafter beginning before January 1, 2022, 12 the percentage of actual value as equalized by the department 13 of revenue as provided in section 441.49 at which commercial 14 property shall be assessed shall be ninety percent. 15 (2) (1) For valuations established for the assessment year 16 beginning January 1, 2022, and each assessment year thereafter 17 beginning before January 1, 2026 , the portion of actual value 18 at which each property unit of commercial property shall be 19 assessed shall be the sum of the following: 20 (a) An amount equal to the product of the assessment 21 limitation percentage applicable to residential property under 22 subsection 4 for that assessment year multiplied by the actual 23 value of the property that exceeds zero dollars but does not 24 exceed one hundred fifty thousand dollars. 25 (b) An amount equal to ninety percent of the actual value of 26 the property for that assessment year that exceeds one hundred 27 fifty thousand dollars. 28 (2) For valuations established for the assessment year 29 beginning January 1, 2026, and each assessment year thereafter, 30 the percentage of actual value as equalized by the department 31 of revenue as provided in section 441.49 at which commercial 32 property shall be assessed shall be one hundred percent. 33 c. For valuations established on or after January 1, 2013, 34 industrial Industrial property, excluding properties referred 35 -38- LSB 5195SV (2) 91 md/jh 38/ 117

S.F. 2472 to in section 427A.1, subsection 9 , shall be assessed at a 1 portion of its actual value, as determined in this paragraph 2 “c” . 3 (1) For valuations established for the assessment year 4 beginning January 1, 2013, the percentage of actual value 5 as equalized by the department of revenue as provided in 6 section 441.49 at which industrial property shall be assessed 7 shall be ninety-five percent. For valuations established 8 for the assessment year beginning January 1, 2014, and each 9 assessment year thereafter beginning before January 1, 2022, 10 the percentage of actual value as equalized by the department 11 of revenue as provided in section 441.49 at which industrial 12 property shall be assessed shall be ninety percent. 13 (2) (1) For valuations established for the assessment year 14 beginning January 1, 2022, and each assessment year thereafter 15 beginning before January 1, 2026 , the portion of actual value 16 at which each property unit of industrial property shall be 17 assessed shall be the sum of the following: 18 (a) An amount equal to the product of the assessment 19 limitation percentage applicable to residential property under 20 subsection 4 for that assessment year multiplied by the actual 21 value of the property that exceeds zero dollars but does not 22 exceed one hundred fifty thousand dollars. 23 (b) An amount equal to ninety percent of the actual value of 24 the property for that assessment year that exceeds one hundred 25 fifty thousand dollars. 26 (2) For valuations established for the assessment year 27 beginning January 1, 2026, and each assessment year thereafter, 28 the percentage of actual value as equalized by the department 29 of revenue as provided in section 441.49 at which industrial 30 property shall be assessed shall be one hundred percent. 31 d. For valuations established for the assessment year 32 beginning January 1, 2019, and each assessment year thereafter 33 beginning before January 1, 2026 , the percentages or portions 34 of actual value at which property is assessed, as determined 35 -39- LSB 5195SV (2) 91 md/jh 39/ 117

S.F. 2472 under this subsection , shall not be applied to the value of 1 wind energy conversion property valued under section 427B.26 2 the construction of which is approved by the Iowa utilities 3 commission on or after July 1, 2018. 4 e. (1) For the fiscal year beginning July 1, 2023, 5 there is appropriated from the general fund of the state to 6 the department of revenue the sum of one hundred twenty-two 7 million three hundred fifty thousand dollars to be used 8 for payments under this paragraph calculated as a result 9 of the assessment limitations imposed under paragraph “b” , 10 subparagraph (2), subparagraph division (a), and paragraph 11 “c” , subparagraph (2), subparagraph division (a). For each 12 fiscal year beginning on or after July 1, 2024, but before 13 July 1, 2027, there is appropriated from the general fund of 14 the state to the department of revenue the sum of one hundred 15 twenty-five million dollars to be used for payments under this 16 paragraph calculated as a result of the assessment limitations 17 imposed under paragraph “b” , subparagraph (2), subparagraph 18 division (a), Code 2026, and paragraph “c” , subparagraph (2), 19 subparagraph division (a) , Code 2026 . 20 (2) For fiscal years beginning on or after July 1, 2023, but 21 before July 1, 2027, each county treasurer shall be paid by the 22 department of revenue an amount calculated under subparagraph 23 (4) for the applicable fiscal year . If an amount appropriated 24 for the fiscal year is insufficient to make all payments as 25 calculated under subparagraph (4), the director of revenue 26 shall prorate the payments to the county treasurers and shall 27 notify the county auditors of the pro rata percentage on or 28 before September 30. 29 (3) On or before July 1 of each applicable fiscal year, the 30 assessor shall report to the county auditor that portion of the 31 total actual value of all commercial property and industrial 32 property in the county that is subject to the assessment 33 limitations imposed under paragraph “b” , subparagraph (2), 34 subparagraph division (a), Code 2026, and paragraph “c” , 35 -40- LSB 5195SV (2) 91 md/jh 40/ 117

S.F. 2472 subparagraph (2), subparagraph division (a), Code 2026, for the 1 assessment year used to calculate the taxes due and payable in 2 that fiscal year. 3 (4) On or before September 1 of each applicable fiscal year, 4 the county auditor shall prepare a statement, based on the 5 report received in subparagraph (3) and information transmitted 6 to the county auditor under chapter 434 , listing for each 7 taxing district in the county: 8 (a) The product of the portion of the total actual value 9 of all commercial property, industrial property, and property 10 valued by the department under chapter 434 in the county 11 that is subject to the assessment limitations imposed under 12 paragraph “b” , subparagraph (2), subparagraph division (a), 13 Code 2026, and paragraph “c” , subparagraph (2), subparagraph 14 division (a), Code 2026, for the applicable assessment year 15 used to calculate taxes which are due and payable in the 16 applicable fiscal year multiplied by the difference, stated 17 as a percentage, between ninety percent and the assessment 18 limitation percentage applicable to residential property under 19 subsection 4 for the applicable assessment year. 20 (b) The tax levy rate per one thousand dollars of assessed 21 value for each taxing district for the applicable fiscal year. 22 (c) The amount of the payment for each county is equal to 23 the amount determined pursuant to subparagraph division (a), 24 multiplied by the tax rate specified in subparagraph division 25 (b), and then divided by one thousand dollars. 26 (5) The county auditor shall certify and forward one copy of 27 the statement described in subparagraph (4) to the department 28 of revenue not later than September 1 of each fiscal year. 29 (6) The amounts determined under this paragraph shall 30 be paid by the department to the county treasurers in equal 31 installments in September and March of each year. The county 32 treasurer shall apportion the payments among the eligible 33 taxing districts in the county and the amounts received by each 34 taxing authority shall be treated the same as property taxes 35 -41- LSB 5195SV (2) 91 md/jh 41/ 117

S.F. 2472 paid. 1 f. For the purposes of this subsection , unless the context 2 otherwise requires: 3 (1) “Contiguous parcels” means any of the following: 4 (a) Parcels that share a common boundary. 5 (b) Parcels within the same building or structure 6 regardless of whether the parcels share a common boundary. 7 (c) Permanent improvements to the land that are situated 8 on one or more parcels of land that are assessed and taxed 9 separately from the permanent improvements if the parcels of 10 land upon which the permanent improvements are situated share 11 a common boundary. 12 (2) “Parcel” means the same as defined in section 445.1 . 13 “Parcel” also means that portion of a parcel assigned a 14 classification of commercial property or industrial property 15 pursuant to section 441.21, subsection 14, paragraph “b” , Code 16 2026 . 17 (3) “Property unit” means a parcel or contiguous parcels 18 all of which are located within the same county, with the same 19 property tax classification, are owned by the same person, and 20 are operated by that person for a common use and purpose. 21 Sec. 56. Section 441.21, subsection 8, paragraph b, Code 22 2026, is amended to read as follows: 23 b. Notwithstanding paragraph “a” , any construction or 24 installation of a solar energy system on property classified 25 as agricultural, residential, multiresidential, commercial, or 26 industrial property shall not increase the actual, assessed, 27 and taxable values of the property for five full assessment 28 years. 29 Sec. 57. Section 441.21, subsections 9 and 10, Code 2026, 30 are amended to read as follows: 31 9. Not later than November 1, 1979 2026 , and November 32 1 of each subsequent year, the director shall certify to 33 the county auditor of each county the percentages of actual 34 value at which residential property, agricultural property, 35 -42- LSB 5195SV (2) 91 md/jh 42/ 117

S.F. 2472 commercial property, industrial property, property valued by 1 the department of revenue pursuant to chapters 428 and 438, 2 property valued by the department of revenue pursuant to 3 chapter 434, and property valued by the department of revenue 4 pursuant to chapter 437 in each assessing jurisdiction in 5 the county each classification of property shall be assessed 6 for taxation , including for assessment years beginning on 7 or after January 1, 2022, the percentages used to apply the 8 assessment limitations under subsection 5, paragraphs “b” 9 and “c” . The county auditor shall proceed to determine the 10 assessed values of agricultural property, residential property, 11 commercial property, industrial property, property valued by 12 the department of revenue pursuant to chapters 428 and 438, 13 property valued by the department of revenue pursuant to 14 chapter 434, and property valued by the department of revenue 15 pursuant to chapter 437 by applying such percentages to the 16 current actual value of such property, as reported to the 17 county auditor by the assessor, and the assessed values so 18 determined shall be the taxable values of such properties upon 19 which the levy shall be made. 20 10. The percentages percentage of actual value computed by 21 the department of revenue under subsection 4 for agricultural 22 property , residential property, commercial property, industrial 23 property, property valued by the department of revenue pursuant 24 to chapters 428 and 438 , property valued by the department of 25 revenue pursuant to chapter 434 , and property valued by the 26 department of revenue pursuant to chapter 437 , including for 27 assessment years beginning on or after January 1, 2022, the 28 percentages used to apply the assessment limitations under 29 subsection 5 , paragraphs “b” and “c” , and used to determine 30 assessed values of those classes of agricultural property 31 do does not constitute a rule as defined in section 17A.2, 32 subsection 11 . 33 Sec. 58. Section 441.21, subsection 13, paragraph a, 34 unnumbered paragraph 1, Code 2026, is amended to read as 35 -43- LSB 5195SV (2) 91 md/jh 43/ 117

S.F. 2472 follows: 1 Beginning with valuations established on or after January 2 1, 2016 2027 , but before January 1, 2022, all of the following 3 shall be valued as a separate class of property known as 4 multiresidential property and, excluding properties referred 5 to in section 427A.1, subsection 9 , shall be assessed at 6 a percentage of its actual value, as determined in this 7 subsection : 8 Sec. 59. Section 441.21, subsection 13, paragraph b, Code 9 2026, is amended by striking the paragraph and inserting in 10 lieu thereof the following: 11 b. (1) For valuations established for the assessment year 12 beginning January 1, 2027, the percentage of actual value as 13 equalized by the department of revenue as provided in section 14 441.49 at which multiresidential property shall be assessed 15 shall be seventy-two and one-half percent. 16 (2) For valuations established for the assessment year 17 beginning January 1, 2028, the percentage of actual value as 18 equalized by the department of revenue as provided in section 19 441.49 at which multiresidential property shall be assessed 20 shall be seventy-five and one-fourth percent. 21 (3) For valuations established for the assessment year 22 beginning January 1, 2029, the percentage of actual value as 23 equalized by the department of revenue as provided in section 24 441.49 at which multiresidential property shall be assessed 25 shall be seventy-eight percent. 26 (4) For valuations established for the assessment year 27 beginning January 1, 2030, the percentage of actual value as 28 equalized by the department of revenue as provided in section 29 441.49 at which multiresidential property shall be assessed 30 shall be eighty and three-fourths percent. 31 (5) For valuations established for the assessment year 32 beginning January 1, 2031, the percentage of actual value as 33 equalized by the department of revenue as provided in section 34 441.49 at which multiresidential property shall be assessed 35 -44- LSB 5195SV (2) 91 md/jh 44/ 117

S.F. 2472 shall be eighty-three and one-half percent. 1 (6) For valuations established for the assessment year 2 beginning January 1, 2032, the percentage of actual value as 3 equalized by the department of revenue as provided in section 4 441.49 at which multiresidential property shall be assessed 5 shall be eighty-six and one-fourth percent. 6 (7) For valuations established for the assessment year 7 beginning January 1, 2033, the percentage of actual value as 8 equalized by the department of revenue as provided in section 9 441.49 at which multiresidential property shall be assessed 10 shall be eighty-nine percent. 11 (8) For valuations established for the assessment year 12 beginning January 1, 2034, the percentage of actual value as 13 equalized by the department of revenue as provided in section 14 441.49 at which multiresidential property shall be assessed 15 shall be ninety-one and three-fourths percent. 16 (9) For valuations established for the assessment year 17 beginning January 1, 2035, the percentage of actual value as 18 equalized by the department of revenue as provided in section 19 441.49 at which multiresidential property shall be assessed 20 shall be ninety-four and one-half percent. 21 (10) For valuations established for the assessment year 22 beginning January 1, 2036, the percentage of actual value as 23 equalized by the department of revenue as provided in section 24 441.49 at which multiresidential property shall be assessed 25 shall be ninety-seven and one-fourth percent. 26 (11) For valuations established for the assessment 27 year beginning January 1, 2037, and each assessment year 28 thereafter, the percentage of actual value as equalized by 29 the department of revenue as provided in section 441.49 at 30 which multiresidential property shall be assessed shall be one 31 hundred percent. 32 Sec. 60. Section 441.21, subsection 13, paragraph c, Code 33 2026, is amended to read as follows: 34 c. Beginning with valuations established on or after 35 -45- LSB 5195SV (2) 91 md/jh 45/ 117

S.F. 2472 January 1, 2016 2027 , but before January 1, 2022, for parcels 1 for which a portion of the parcel satisfies the requirements 2 for classification as multiresidential property pursuant to 3 paragraph “a” , subparagraph (5) or (6), the assessor shall 4 assign to that portion of the parcel the classification 5 of multiresidential property and to such other portions of 6 the parcel the property classification for which such other 7 portions qualify. 8 Sec. 61. Section 441.21, subsection 13, Code 2026, is 9 amended by adding the following new paragraph: 10 NEW PARAGRAPH . f. For purposes of equalization under 11 sections 441.47 through 441.49, multiresidential property shall 12 be considered residential property. 13 Sec. 62. Section 441.21, subsection 14, Code 2026, is 14 amended to read as follows: 15 14. a. Beginning with valuations established on or after 16 January 1, 2022 2027 , all of the following property primarily 17 used or intended for human habitation containing two or fewer 18 dwelling units shall be classified and valued as residential 19 property : . 20 (1) Property primarily used or intended for human 21 habitation containing two or fewer dwelling units. 22 (2) Mobile home parks. 23 (3) Manufactured home communities. 24 (4) Land-leased communities. 25 (5) Assisted living facilities. 26 (6) A parcel primarily used or intended for human habitation 27 containing three or more separate dwelling units. If a 28 portion of such a parcel is used or intended for a purpose 29 that, if the primary use, would be classified as commercial 30 property or industrial property, each such portion, including 31 a proportionate share of the land included in the parcel, if 32 applicable, shall be assigned the appropriate classification 33 pursuant to paragraph “b” . 34 (7) For a parcel that is primarily used or intended for use 35 -46- LSB 5195SV (2) 91 md/jh 46/ 117

S.F. 2472 as commercial property or industrial property, that portion 1 of the parcel that is used or intended for human habitation, 2 regardless of the number of dwelling units contained on the 3 parcel, including a proportionate share of the land included 4 in the parcel, if applicable. The portion of such a parcel 5 used or intended for use as commercial property or industrial 6 property, including a proportionate share of the land included 7 in the parcel, if applicable, shall be assigned the appropriate 8 classification pursuant to paragraph “b” . 9 b. Beginning with valuations established on or after 10 January 1, 2022, for parcels for which a portion of the parcel 11 satisfies the requirements for classification as residential 12 property pursuant to paragraph “a” , subparagraph (6) or (7), 13 the assessor shall assign to that portion of the parcel the 14 classification of residential property and to such other 15 portions of the parcel the property classification for which 16 such other portions qualify. 17 c. Property that is rented or leased to low-income 18 individuals and families as authorized by section 42 of the 19 Internal Revenue Code , and that has not been withdrawn from 20 section 42 assessment procedures under subsection 2 of this 21 section , or a hotel, motel, inn, or other building where rooms 22 or dwelling units are usually rented for less than one month 23 shall not be classified as residential property under this 24 subsection . 25 d. As used in this subsection : 26 (1) “Assisted living facility” means property for providing 27 assisted living as defined in section 231C.2 . “Assisted living 28 facility” also includes a health care facility, as defined in 29 section 135C.1 , an elder group home, as defined in section 30 231B.1 , a child foster care facility under chapter 237 , or 31 property used for a hospice program as defined in section 32 135J.1 . 33 (2) “Dwelling unit” means an apartment, group of rooms, 34 or single room which is occupied as separate living quarters 35 -47- LSB 5195SV (2) 91 md/jh 47/ 117

S.F. 2472 or, if vacant, is intended for occupancy as separate living 1 quarters, in which a tenant can live and sleep separately from 2 any other persons in the building. 3 (3) “Land-leased community” means the same as defined in 4 sections 335.30A and 414.28A . 5 (4) “Manufactured home community” means the same as a 6 land-leased community. 7 (5) “Mobile home park” means the same as defined in section 8 435.1 . 9 Sec. 63. Section 558.46, Code 2026, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 4A. For the purposes of this section, 12 “residential property” includes multiresidential property. 13 Sec. 64. SAVINGS PROVISION. This division of this Act, 14 pursuant to section 4.13, does not affect the operation of, 15 or prohibit the application of, prior provisions of section 16 441.21, or rules adopted under chapter 17A to administer prior 17 provisions of section 441.21, for assessment years beginning 18 before January 1, 2026, or for duties, powers, protests, 19 appeals, proceedings, actions, or remedies attributable to an 20 assessment year beginning before January 1, 2026, including 21 property taxes due and payable in a fiscal year as the result 22 of an assessment year beginning before January 1, 2026. 23 Sec. 65. EFFECTIVE DATE. The following take effect January 24 1, 2027: 25 1. The section of this division of this Act amending section 26 386.8. 27 2. The section of this division of this Act amending section 28 386.9. 29 3. The section of this division of this Act amending section 30 386.10. 31 4. The section of this division of this Act amending section 32 404.2, subsection 2, paragraph “f”. 33 5. The section of this division of this Act amending section 34 404.3, subsection 4, paragraph “a”. 35 -48- LSB 5195SV (2) 91 md/jh 48/ 117

S.F. 2472 6. The section of this division of this Act amending section 1 404.3A. 2 7. The section of this division of this Act amending section 3 404.3D. 4 8. The section of this division of this Act amending section 5 441.21, subsection 2. 6 9. The section of this division of this Act amending section 7 441.21, subsection 8, paragraph “b”. 8 10. The sections of this division of this Act amending 9 section 441.21, subsection 13. 10 11. The section of this division of this Act amending 11 section 441.21, subsection 14. 12 12. The section of this division of this Act amending 13 section 558.46. 14 Sec. 66. RETROACTIVE APPLICABILITY. Except as otherwise 15 provided in this division of this Act, this division of this 16 Act applies retroactively to assessment years beginning on or 17 after January 1, 2026. 18 Sec. 67. APPLICABILITY. The following apply to assessment 19 years beginning on or after January 1, 2027: 20 1. The section of this division of this Act amending section 21 386.8. 22 2. The section of this division of this Act amending section 23 386.9. 24 3. The section of this division of this Act amending section 25 386.10. 26 4. The section of this division of this Act amending section 27 404.2, subsection 2, paragraph “f”. 28 5. The section of this division of this Act amending section 29 404.3, subsection 4, paragraph “a”. 30 6. The section of this division of this Act amending section 31 404.3A. 32 7. The section of this division of this Act amending section 33 404.3D. 34 8. The section of this division of this Act amending section 35 -49- LSB 5195SV (2) 91 md/jh 49/ 117

S.F. 2472 441.21, subsection 2. 1 9. The section of this division of this Act amending section 2 441.21, subsection 8, paragraph “b”. 3 10. The sections of this division of this Act amending 4 section 441.21, subsection 13. 5 11. The section of this division of this Act amending 6 section 441.21, subsection 14. 7 12. The section of this division of this Act amending 8 section 558.46. 9 DIVISION V 10 DISABLED VETERAN AND HOMESTEAD CREDITS AND EXEMPTIONS 11 Sec. 68. Section 25B.7, subsection 2, paragraph a, Code 12 2026, is amended to read as follows: 13 a. Homestead tax credit pursuant to section 425.1 , and 14 sections 425.2 through 425.13 , and section 425.15 . 15 Sec. 69. Section 425.1, subsection 2, Code 2026, is amended 16 by striking the subsection and inserting in lieu thereof the 17 following: 18 2. a. The homestead credit fund shall be apportioned each 19 year so as to give a credit against the tax on each eligible 20 homestead in the state equal to the amounts specified pursuant 21 to paragraph “b” or “c” , as applicable. 22 b. (1) If the owner of a homestead allowed a credit under 23 this subchapter is any of the following, the homestead credit 24 allowed on the homestead shall be the entire amount of tax 25 levied on the homestead: 26 (a) A veteran of any of the military forces of the United 27 States who acquired the homestead under 38 U.S.C. §21.801, 28 21.802 prior to August 6, 1991, or under 38 U.S.C. §2101, 2102. 29 (b) A veteran as defined in section 35.1 with a permanent 30 service-connected disability rating of one hundred percent, as 31 certified by the United States department of veterans affairs, 32 or a permanent and total disability rating based on individual 33 unemployability that is compensated at the one hundred percent 34 disability rate, as certified by the United States department 35 -50- LSB 5195SV (2) 91 md/jh 50/ 117

S.F. 2472 of veterans affairs. 1 (c) A former member of the national guard of any state 2 who otherwise meets the service requirements of section 35.1, 3 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 4 permanent service-connected disability rating of one hundred 5 percent, as certified by the United States department of 6 veterans affairs, or a permanent and total disability rating 7 based on individual unemployability that is compensated at the 8 one hundred percent disability rate, as certified by the United 9 States department of veterans affairs. 10 (d) An individual who is a surviving spouse or a child and 11 who is receiving dependency and indemnity compensation pursuant 12 to 38 U.S.C. §1301 et seq., as certified by the United States 13 department of veterans affairs. 14 (2) (a) For an owner described in subparagraph (1), 15 subparagraph division (a), (b), or (c), the credit allowed 16 shall be continued to the estate of an owner who is deceased 17 or the surviving spouse and any child, as defined in section 18 234.1, who are the beneficiaries of a deceased owner, so long 19 as the surviving spouse remains unmarried. 20 (b) An individual described in subparagraph (1), 21 subparagraph division (d), is no longer eligible for the credit 22 upon termination of dependency and indemnity compensation under 23 38 U.S.C. §1301 et seq. 24 (3) An owner or a beneficiary of an owner who elects to 25 secure the credit provided in this paragraph is not eligible 26 for the credit provided in paragraph “c” or any other real 27 property tax credit or exemption provided by law for veterans 28 of military service. 29 (4) If an owner acquires a different homestead, the 30 credit allowed under this paragraph may be claimed on the new 31 homestead unless the owner fails to meet the other requirements 32 of this paragraph. 33 (5) (a) Except as provided in subparagraph division (b), 34 the list of the names and addresses of individuals allowed 35 -51- LSB 5195SV (2) 91 md/jh 51/ 117

S.F. 2472 a credit under this paragraph and maintained by the county 1 recorder, county treasurer, county assessor, city assessor, or 2 other government body is confidential information and shall 3 not be disseminated to any person unless otherwise ordered by 4 a court or released by the lawful custodian of the records 5 pursuant to state or federal law. The county recorder, county 6 treasurer, county assessor, city assessor, or other government 7 body responsible for maintaining the names and addresses 8 of individuals allowed a credit under this paragraph may 9 display such credit on individual paper records and individual 10 electronic records, including display on an internet site. 11 (b) Upon request, a county recorder, county assessor, city 12 assessor, or other entity may share information as described in 13 subparagraph division (a) to a county veterans service officer 14 for purposes of providing information on benefits and services 15 available to veterans and their families. 16 (6) (a) For an owner who makes an application to secure 17 the credit provided in this paragraph before July 1, 2026, 18 and for the beneficiary of such an owner, “homestead” shall 19 mean the same as defined in section 425.11 for each succeeding 20 assessment year. 21 (b) For an owner who makes an application to secure the 22 credit provided in this paragraph on or after July 1, 2026, and 23 for the beneficiary of such an owner, “homestead” shall mean the 24 same as provided in section 425.11, except the homestead shall 25 not include appurtenances and shall not exceed one-half acre. 26 (7) For purposes of this paragraph, “permanent and total 27 disability rating based on individual unemployability” means 28 a condition under which a person has either a permanent 29 service-connected disability rating of sixty percent or two or 30 more permanent service-connected disability conditions in which 31 one of the conditions has at least a forty percent rating and 32 the combined rating for all the conditions is at least seventy 33 percent, and the person has an administrative adjustment added 34 to the service-connected disability rating, due to individual 35 -52- LSB 5195SV (2) 91 md/jh 52/ 117

S.F. 2472 unemployability, such that the United States department of 1 veterans affairs rates the veteran permanently and totally 2 disabled for purposes of disability compensation. 3 c. (1) For assessment years beginning prior to January 4 1, 2026, unless eligible under section 425.15, Code 2026, an 5 amount equal to the actual levy on the first four thousand 6 eight hundred fifty dollars of actual value for each homestead. 7 (2) For the assessment year beginning January 1, 2026, 8 and each assessment year thereafter, unless eligible under 9 paragraph “b” , zero. 10 Sec. 70. Section 425.1A, subsection 1, Code 2026, is amended 11 to read as follows: 12 1. The following exemptions from taxation shall be 13 allowed in addition to following application of the homestead 14 credit exemption under subsection 1A and the exemption under 15 subsection 1B, if applicable, for an owner that has attained 16 the age of sixty-five years by January 1 of the assessment 17 year: 18 a. For the assessment year beginning January 1, 2023, the 19 eligible homestead, not to exceed three thousand two hundred 20 fifty dollars in taxable value. 21 b. For the assessment year years beginning on or after 22 January 1, 2024, and each succeeding assessment year, the 23 eligible homestead, not to exceed six thousand five hundred 24 dollars in taxable value. 25 Sec. 71. Section 425.1A, Code 2026, is amended by adding the 26 following new subsections: 27 NEW SUBSECTION . 1A. a. For the assessment year beginning 28 January 1, 2026, an exemption from taxation of twenty-five 29 percent of taxable value, not to exceed an exemption of one 30 hundred seventy-five thousand dollars in taxable value, shall 31 be allowed on each eligible homestead. 32 b. For the assessment year beginning January 1, 2027, an 33 exemption from taxation of twenty-seven and one-half percent 34 of taxable value, not to exceed an exemption of one hundred 35 -53- LSB 5195SV (2) 91 md/jh 53/ 117

S.F. 2472 ninety-two thousand five hundred dollars in taxable value, 1 shall be allowed on each eligible homestead. 2 c. For the assessment year beginning January 1, 2028, an 3 exemption from taxation of thirty percent of taxable value, not 4 to exceed an exemption of two hundred ten thousand dollars in 5 taxable value, shall be allowed on each eligible homestead. 6 d. For the assessment year beginning January 1, 2029, an 7 exemption from taxation of thirty-two and one-half percent 8 of taxable value, not to exceed an exemption of two hundred 9 twenty-seven thousand five hundred dollars in taxable value, 10 shall be allowed on each eligible homestead. 11 e. For the assessment year beginning January 1, 2030, an 12 exemption from taxation of thirty-five percent of taxable 13 value, not to exceed an exemption of two hundred forty-five 14 thousand dollars in taxable value, shall be allowed on each 15 eligible homestead. 16 f. For the assessment year beginning January 1, 2031, an 17 exemption from taxation of thirty-seven and one-half percent 18 of taxable value, not to exceed an exemption of two hundred 19 sixty-two thousand five hundred dollars in taxable value, shall 20 be allowed on each eligible homestead. 21 g. For the assessment year beginning January 1, 2032, an 22 exemption from taxation of forty percent of taxable value, not 23 to exceed an exemption of two hundred eighty thousand dollars 24 in taxable value, shall be allowed on each eligible homestead. 25 h. For the assessment year beginning January 1, 2033, an 26 exemption from taxation of forty-two and one-half percent 27 of taxable value, not to exceed an exemption of two hundred 28 ninety-seven thousand five hundred dollars in taxable value, 29 shall be allowed on each eligible homestead. 30 i. For the assessment year beginning January 1, 2034, an 31 exemption from taxation of forty-five percent of taxable value, 32 not to exceed an exemption of three hundred fifteen thousand 33 dollars in taxable value, shall be allowed on each eligible 34 homestead. 35 -54- LSB 5195SV (2) 91 md/jh 54/ 117

S.F. 2472 j. For the assessment year beginning January 1, 2035, an 1 exemption from taxation of forty-seven and one-half percent 2 of taxable value, not to exceed an exemption of three hundred 3 thirty-two thousand five hundred dollars in taxable value, 4 shall be allowed on each eligible homestead. 5 k. (1) Except as provided in subparagraph (2), for each 6 assessment year beginning on or after January 1, 2036, an 7 exemption from taxation of fifty percent of taxable value, not 8 to exceed an exemption of three hundred fifty thousand dollars 9 in taxable value, shall be allowed on each eligible homestead. 10 (2) (a) For an owner that has attained the age of sixty 11 years but has not yet attained the age of seventy by January 1 12 of the assessment year, the amount of the exemption shall be 13 sixty percent of taxable value, not to exceed an exemption of 14 three hundred fifty thousand dollars in taxable value. 15 (b) For an owner that has attained the age of seventy years 16 but has not yet attained the age of eighty by January 1 of the 17 assessment year, the amount of the exemption shall be seventy 18 percent of taxable value, not to exceed an exemption of three 19 hundred fifty thousand dollars in taxable value. 20 (c) For an owner that has attained the age of eighty years 21 but has not yet attained the age of ninety by January 1 of the 22 assessment year, the amount of the exemption shall be eighty 23 percent of taxable value, not to exceed an exemption of three 24 hundred fifty thousand dollars in taxable value. 25 (d) For an owner that has attained the age of ninety years 26 but has not yet attained the age of one hundred by January 1 27 of the assessment year, the amount of the exemption shall be 28 ninety percent of taxable value, not to exceed an exemption of 29 three hundred fifty thousand dollars in taxable value. 30 (e) For an owner that has attained the age of one hundred 31 years by January 1 of the assessment year, the amount of the 32 exemption shall be one hundred percent of taxable value, not 33 to exceed an exemption of three hundred fifty thousand dollars 34 in taxable value. 35 -55- LSB 5195SV (2) 91 md/jh 55/ 117

S.F. 2472 NEW SUBSECTION . 1B. a. For purposes of this subsection: 1 (1) “Mortgage” means the same as defined in section 2 554.9102. 3 (2) “Unencumbered homestead” means a homestead as defined in 4 section 425.11, but excluding appurtenances and that portion of 5 the land upon which the dwelling house is situated that exceeds 6 one-half acre, owned by an individual that has attained the age 7 of sixty-five years by January 1 of the applicable assessment 8 year and for which no mortgage or other indebtedness or account 9 secured by an interest in the homestead exists on January 1 of 10 the assessment year. 11 b. (1) For the assessment year beginning January 1, 2026, 12 if the homestead is an unencumbered homestead, an exemption 13 from taxation of twenty-five percent of the taxable value 14 following application of the exemption under subsection 1A, but 15 before the exemption under subsection 1, if applicable. 16 (2) For the assessment year beginning January 1, 2027, 17 if the homestead is an unencumbered homestead, an exemption 18 from taxation of fifty percent of the taxable value following 19 application of the exemption under subsection 1A, but before 20 the exemption under subsection 1, if applicable. 21 (3) For the assessment year beginning January 1, 2028, if 22 the homestead is an unencumbered homestead, an exemption from 23 taxation of seventy-five percent of the taxable value following 24 application of the exemption under subsection 1A, but before 25 the exemption under subsection 1, if applicable. 26 (4) For each assessment year beginning on or after January 27 1, 2029, if the homestead is an unencumbered homestead, an 28 exemption from taxation of one hundred percent of the taxable 29 value following application of the exemption under subsection 30 1A, but before the exemption under subsection 1, if applicable. 31 c. The exemption under this subsection shall not apply 32 to voter-approved levies or property tax levies, or portions 33 thereof, that are for the payment of voter-approved bonds 34 or other voter-approved indebtedness. For purposes of this 35 -56- LSB 5195SV (2) 91 md/jh 56/ 117

S.F. 2472 subsection, “voter-approved levy” means a levy under chapter 1 28E, subchapter II, section 260C.22, section 260C.28, chapter 2 300, section 384.7, chapter 386, section 422D.5, and the 3 voter-approved physical plant and equipment levy under section 4 298.2. 5 Sec. 72. Section 425.1A, subsection 2, Code 2026, is amended 6 to read as follows: 7 2. Section 25B.7, subsection 1 , shall not apply to the 8 property tax exemption exemptions provided in this section . 9 Sec. 73. Section 425.2, subsections 1 and 2, Code 2026, are 10 amended to read as follows: 11 1. A person who wishes to qualify for the homestead credit 12 or exemptions allowed under this subchapter shall obtain the 13 appropriate forms for filing for the credit from the assessor. 14 The forms shall include the ability to claim the credit under 15 section 425.1 and the exemptions under section 425.1A. 16 However, a separate form shall be required for claiming a 17 credit under section 425.1, subsection 2, paragraph “b” . The 18 person claiming the credit or exemption shall file a verified 19 statement and designation of homestead with the assessor for 20 the year for which the person is first claiming the credit 21 or exemption . The claim shall be filed not later than July 22 1 of the year for which the person is claiming the credit or 23 exemption . A claim filed after July 1 of the year for which the 24 person is claiming the credit or exemption shall be considered 25 as a claim filed for the following year. 26 2. Upon the filing and allowance of the claim, the claim 27 shall be allowed on that homestead for successive years without 28 further filing as long as the property is legally or equitably 29 owned and used as a homestead by that person or that person’s 30 spouse on July 1 of each of those successive years, and the 31 owner of the property being claimed as a homestead declares 32 residency in Iowa for purposes of income taxation, and the 33 property is occupied by that person or that person’s spouse 34 for at least six months in each of those calendar years in 35 -57- LSB 5195SV (2) 91 md/jh 57/ 117

S.F. 2472 which the fiscal year begins. When the property is sold or 1 transferred, the buyer or transferee who wishes to qualify 2 shall refile for the credit or exemption . However, when the 3 property is transferred as part of a distribution made pursuant 4 to chapter 598 , the transferee who is the spouse retaining 5 ownership of the property is not required to refile for the 6 credit or exemption . Property divided pursuant to chapter 598 7 shall not be modified following the division of the property. 8 An owner who ceases to use a property for a homestead or 9 intends not to use it as a homestead for at least six months in 10 a calendar year shall provide written notice to the assessor 11 by July 1 following the date on which the use is changed. A 12 person who sells or transfers a homestead or the personal 13 representative of a deceased person who had a homestead at the 14 time of death, shall provide written notice to the assessor 15 that the property is no longer the homestead of the former 16 claimant. 17 Sec. 74. Section 425.2, subsection 4, Code 2026, is amended 18 by striking the subsection. 19 Sec. 75. Section 425.2, subsections 5 and 6, Code 2026, are 20 amended to read as follows: 21 5. Any person sixty-five years of age or older or any person 22 who is disabled may request, in writing, from the appropriate 23 assessor forms for filing for homestead tax credit . Any 24 person sixty-five years of age or older or who is disabled 25 may complete the form, which shall include a statement of 26 homestead, and mail or return it to the appropriate assessor. 27 The signature of the claimant on the statement shall be 28 considered the claimant’s acknowledgment that all statements 29 and facts entered on the form are correct to the best of the 30 claimant’s knowledge. 31 6. Upon adoption of a resolution by the county board 32 of supervisors, any person may request, in writing, from 33 the appropriate assessor forms for the filing for homestead 34 tax credit . The person may complete the form, which shall 35 -58- LSB 5195SV (2) 91 md/jh 58/ 117

S.F. 2472 include a statement of homestead, and mail or return it to 1 the appropriate assessor. The signature of the claimant on 2 the statement of homestead shall be considered the claimant’s 3 acknowledgment that all statements and facts entered on the 4 form are correct to the best of the claimant’s knowledge. 5 Sec. 76. Section 425.8, subsection 1, Code 2026, is amended 6 to read as follows: 7 1. The director of revenue shall prescribe the form 8 for the making of a verified statement and designation of 9 homestead, the form for the supporting affidavits required 10 herein, and such other forms as may be necessary for the proper 11 administration of this subchapter . Whenever necessary, the 12 department of revenue shall forward to the county auditors of 13 the several counties in the state the prescribed sample forms, 14 and the county auditors shall furnish blank forms prepared in 15 accordance therewith with the assessment rolls, books, and 16 supplies delivered to the assessors. The department of revenue 17 shall prescribe and the county auditors shall provide on the 18 forms for claiming the homestead credit a statement to the 19 effect that the owner realizes that the owner must give written 20 notice to the assessor when the owner changes the use of the 21 property. 22 Sec. 77. Section 425.11, subsection 1, paragraph d, 23 subparagraph (1), unnumbered paragraph 1, Code 2026, is amended 24 to read as follows: 25 The homestead includes the dwelling house which the owner, 26 in good faith, is occupying as a home on July 1 of the year for 27 which the credit or exemption is claimed and occupies as a home 28 for at least six months during the calendar year in which the 29 fiscal year begins, except as otherwise provided. 30 Sec. 78. Section 425.11, subsection 1, paragraph d, 31 subparagraph (3), Code 2026, is amended to read as follows: 32 (3) It must not embrace more than one dwelling house, but 33 where a homestead has more than one dwelling house situated 34 thereon, the exemption and or credit provided for in this 35 -59- LSB 5195SV (2) 91 md/jh 59/ 117

S.F. 2472 subchapter shall apply to the home and buildings used by the 1 owner, but shall not apply to any other dwelling house and 2 buildings appurtenant. 3 Sec. 79. Section 425.11, subsection 1, paragraph e, 4 subparagraph (2), Code 2026, is amended to read as follows: 5 (2) For the purpose of this subchapter , the word “owner” 6 shall be construed to mean a bona fide owner and not one for 7 the purpose only of availing the person of the benefits of this 8 subchapter . In order to qualify for the homestead tax credit 9 and or exemption, evidence of ownership shall be on file in the 10 office of the clerk of the district court or recorded in the 11 office of the county recorder at the time the owner files with 12 the assessor a verified statement of the homestead claimed by 13 the owner as provided in section 425.2 . 14 Sec. 80. Section 483A.24, subsection 20, Code 2026, is 15 amended to read as follows: 16 20. Upon payment of a fee established by rules adopted 17 pursuant to section 483A.1 for a lifetime trout fishing 18 license, the department shall issue a lifetime trout fishing 19 license to a person who is at least sixty-five years of age or 20 to a person who qualifies for the disabled veteran homestead 21 credit under section 425.15 425.1, subsection 2, paragraph “b” . 22 The department shall prepare an application to be used by a 23 person requesting a lifetime trout fishing license under this 24 subsection . 25 Sec. 81. REPEAL. Section 425.15, Code 2026, is repealed. 26 Sec. 82. IMPLEMENTATION. Homestead owners who have filed 27 for or that are receiving homestead credits or exemptions under 28 chapter 425, subchapter I, before the effective date of this 29 division of this Act shall continue to receive such credits and 30 exemptions for which the owner is eligible for assessment years 31 beginning on or after January 1, 2026, without refiling, and, 32 if the owner is eligible, shall receive the exemption under 33 section 425.1A, subsection 1A, as enacted in this division of 34 this Act, without filing for such exemption. 35 -60- LSB 5195SV (2) 91 md/jh 60/ 117

S.F. 2472 Sec. 83. RETROACTIVE APPLICABILITY. This division of this 1 Act applies retroactively to assessment years beginning on or 2 after January 1, 2026. 3 DIVISION VI 4 MILITARY SERVICE PROPERTY TAX EXEMPTION 5 Sec. 84. Section 426A.11, subsection 2, Code 2026, is 6 amended to read as follows: 7 2. a. The property, not to exceed one thousand eight 8 hundred fifty-two dollars in taxable value for assessment years 9 beginning before January 1, 2023, of an honorably separated, 10 retired, furloughed to a reserve, placed on inactive status, 11 or discharged veteran, as defined in section 35.1, subsection 12 2 , paragraph “a” or “b” . 13 b. The property, not to exceed four thousand dollars in 14 taxable value for the assessment years beginning on or after 15 January 1, 2023, but before January 1, 2026, of an honorably 16 separated, retired, furloughed to a reserve, placed on inactive 17 status, or discharged veteran, as defined in section 35.1, 18 subsection 2 , paragraph “a” or “b” . 19 c. The property, not to exceed the following amounts in 20 taxable value, of an honorably separated, retired, furloughed 21 to a reserve, placed on inactive status, or discharged veteran, 22 as defined in section 35.1, subsection 2, paragraph “a” or “b” : 23 (1) Five thousand dollars in taxable value for the 24 assessment year beginning January 1, 2026. 25 (2) Six thousand dollars in taxable value for the assessment 26 year beginning January 1, 2027. 27 (3) Seven thousand dollars in taxable value for assessment 28 years beginning on or after January 1, 2028. 29 Sec. 85. RETROACTIVE APPLICABILITY. This division of this 30 Act applies retroactively to January 1, 2026, for assessment 31 years beginning on or after that date. 32 DIVISION VII 33 HOSPITAL AND EMERGENCY MEDICAL SERVICES PROPERTY TAX LEVIES 34 Sec. 86. Section 347.7, Code 2026, is amended by adding the 35 -61- LSB 5195SV (2) 91 md/jh 61/ 117

S.F. 2472 following new subsection: 1 NEW SUBSECTION . 3A. a. For fiscal years beginning on 2 or after July 1, 2027, any property tax levy imposed for a 3 county hospital under this chapter that is limited by law to 4 a specific property tax levy rate per one thousand dollars of 5 assessed value shall not exceed a levy rate per one thousand 6 dollars of assessed value that is equal to one thousand 7 multiplied by the quotient obtained by dividing one hundred 8 five percent of the current fiscal year’s actual property tax 9 dollars certified for such levy by the remainder of the total 10 assessed value used to calculate such taxes for the budget year 11 minus value attributable to new valuation. 12 b. For purposes of this subsection, “budget year” , “current 13 fiscal year” , and “new valuation” mean the same as defined in 14 section 331.423. 15 Sec. 87. Section 347A.3, Code 2026, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 3. a. For fiscal years beginning on 18 or after July 1, 2027, any property tax levy imposed for a 19 county hospital under this chapter that is limited by law to 20 a specific property tax levy rate per one thousand dollars of 21 assessed value shall not exceed a levy rate per one thousand 22 dollars of assessed value that is equal to one thousand 23 multiplied by the quotient obtained by dividing one hundred 24 five percent of the current fiscal year’s actual property tax 25 dollars certified for such levy by the remainder of the total 26 assessed value used to calculate such taxes for the budget year 27 minus value attributable to new valuation. 28 b. For purposes of this subsection, “budget year” , “current 29 fiscal year” , and “new valuation” mean the same as defined in 30 section 331.423. 31 Sec. 88. Section 357F.8, Code 2026, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 3. a. For fiscal years beginning on 34 or after July 1, 2027, any property tax levy imposed for 35 -62- LSB 5195SV (2) 91 md/jh 62/ 117

S.F. 2472 the district under this chapter that is limited by law to a 1 specific property tax levy rate per one thousand dollars of 2 assessed value shall not exceed a levy rate per one thousand 3 dollars of assessed value that is equal to one thousand 4 multiplied by the quotient obtained by dividing one hundred 5 five percent of the current fiscal year’s actual property tax 6 dollars certified for such levy by the remainder of the total 7 assessed value used to calculate such taxes for the budget year 8 minus value attributable to new valuation. 9 b. For purposes of this subsection, “budget year” , “current 10 fiscal year” , and “new valuation” mean the same as defined in 11 section 331.423. 12 Sec. 89. Section 357G.8, Code 2026, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 3. a. For fiscal years beginning on 15 or after July 1, 2027, any property tax levy imposed for 16 the district under this chapter that is limited by law to a 17 specific property tax levy rate per one thousand dollars of 18 assessed value shall not exceed a levy rate per one thousand 19 dollars of assessed value that is equal to one thousand 20 multiplied by the quotient obtained by dividing one hundred 21 five percent of the current fiscal year’s actual property tax 22 dollars certified for such levy by the remainder of the total 23 assessed value used to calculate such taxes for the budget year 24 minus value attributable to new valuation. 25 b. For purposes of this subsection, “budget year” , “current 26 fiscal year” , and “new valuation” mean the same as defined in 27 section 384.1. 28 Sec. 90. NEW SECTION . 422D.5A Levy limitation. 29 1. For fiscal years beginning on or after July 1, 2027, 30 any property tax levy imposed under this chapter that is 31 limited by law to a specific property tax levy rate per one 32 thousand dollars of assessed value shall not exceed a levy rate 33 per one thousand dollars of assessed value that is equal to 34 one thousand multiplied by the quotient obtained by dividing 35 -63- LSB 5195SV (2) 91 md/jh 63/ 117

S.F. 2472 one hundred five percent of the current fiscal year’s actual 1 property tax dollars certified for such levy by the remainder 2 of the total assessed value used to calculate such taxes for 3 the budget year minus value attributable to new valuation. 4 2. For purposes of this section, “budget year” , “current 5 fiscal year” , and “new valuation” mean the same as defined in 6 section 331.423. 7 DIVISION VIII 8 PROPERTY TAX LEVY RATES 9 Sec. 91. Section 176A.10, subsection 2, Code 2026, is 10 amended by striking the subsection. 11 Sec. 92. Section 312.2, subsection 5, paragraph a, Code 12 2026, is amended to read as follows: 13 a. The treasurer of state, before making any allotments 14 to counties under this section , shall reduce the allotment to 15 a county for the secondary road fund by the amount by which 16 the total funds that the county transferred or provided during 17 the prior fiscal year under section 331.429, subsection 1 , 18 paragraphs “a” , “b” , “d” , and “e” , are less than seventy-five 19 fifty-one percent of the sum of the following: 20 (1) From the general fund of the county, the dollar 21 equivalent of a tax of sixteen and seven-eighths eleven and 22 thirteen-sixteenths cents per thousand dollars of assessed 23 value on all taxable property in the county. 24 (2) From the rural services fund of the county, the dollar 25 equivalent of a tax of three two dollars and three-eighths of a 26 cent ten and twenty-one eightieths cents per thousand dollars 27 of assessed value on all taxable property not located within 28 the corporate limits of a city in the county. 29 Sec. 93. NEW SECTION . 444.25 Maximum property tax levy 30 rates —— adjustments. 31 1. For purposes of this section: 32 a. “Budget year” is the fiscal year beginning during the 33 calendar year in which a budget is certified. 34 b. “Current fiscal year” is the fiscal year ending during 35 -64- LSB 5195SV (2) 91 md/jh 64/ 117

S.F. 2472 the calendar year in which a budget for the budget year is 1 certified. 2 c. “Rate-limited property tax levy” includes any ad valorem 3 property tax levy limited by law to a specific property tax 4 levy rate per one thousand dollars of assessed value used to 5 calculate taxes, but does not include the school district 6 foundation levy under section 257.3, the county general 7 services levy under section 331.423, subsection 1, the county 8 rural services levy under section 331.423, subsection 2, the 9 city general fund levy under section 384.1, subsection 3, 10 the physical plant and equipment levies under section 298.2, 11 the school district bond tax under section 298.18, any levy 12 under chapter 28M, a levy under section 384.12, subsection 13 1, paragraph “a” , levied for operation and maintenance of 14 a municipal transit system, a levy under section 384.12, 15 subsection 1, paragraph “b” , levied for operation and 16 maintenance of a regional transit district, a levy for the 17 office of the assessor under section 441.16, a levy for a 18 county agricultural extension under section 176A.10, any levy 19 under chapter 347 or 347A, any levy under chapter 386, and 20 any levy under chapter 357F, 357G, or 422D. In addition, 21 “rate-limited property tax levy” does not include levy rates 22 used in the calculations under section 312.2, subsection 5, 23 paragraph “a” . 24 2. For the fiscal year beginning July 1, 2027, each 25 rate-limited property tax levy may only be imposed if the 26 governmental entity imposed such levy for the fiscal year 27 beginning July 1, 2026, and shall, by operation of this 28 section, be limited to a levy rate per one thousand dollars 29 of assessed value that is equal to one thousand multiplied by 30 the quotient of one hundred two percent of the current fiscal 31 year’s actual property tax dollars certified for such levy 32 divided by the total assessed value used to calculate such 33 taxes for the budget year, but not less than a levy rate per one 34 thousand dollars of assessed value that results in an amount 35 -65- LSB 5195SV (2) 91 md/jh 65/ 117

S.F. 2472 of actual property tax dollars certified for levy for such 1 levy equal to one hundred and one-half percent of the actual 2 property tax dollars certified for such levy for the fiscal 3 year beginning July 1, 2026. 4 3. For the fiscal year beginning July 1, 2028, and each 5 fiscal year thereafter, rate-limited property tax levies may 6 be imposed by any governmental entity otherwise authorized by 7 law, regardless of whether the governmental entity imposed the 8 levy for the fiscal year beginning July 1, 2026, at rates not 9 to exceed those established by the general assembly by statute 10 following receipt and consideration of the report submitted by 11 the legislative interim committee requested to be established 12 by the legislative council in this division of this Act. 13 Sec. 94. NEW SECTION . 444.26 Use of bonds and indebtedness 14 for general operations —— prohibition. 15 1. For purposes of this section: 16 a. “Exempt finance lease” means a finance lease of the 17 governmental entity if the aggregate principal amount of all 18 finance leases of the governmental entity is less than one and 19 one-fourth percent of the governmental entity’s general fund 20 budget for the most recently completed fiscal year. 21 b. “General operations” means services or activities 22 generally funded from the governmental entity’s general fund, 23 which are necessary for the operation of the governmental 24 entity, including salaries and benefits, or which are for the 25 health and welfare of the governmental entity’s citizens or 26 primarily intended to benefit all residents of the governmental 27 entity, but excluding services financed by statutory funds 28 other than a debt service fund. 29 c. “Indebtedness” includes but is not limited to leases and 30 finance leases, excluding exempt finance leases, for public 31 safety vehicles, maintenance vehicles and equipment, sanitation 32 vehicles and equipment, transit vehicles, public works vehicles 33 and machinery, recreation equipment and facilities, and 34 information technology and office equipment, but does not 35 -66- LSB 5195SV (2) 91 md/jh 66/ 117

S.F. 2472 include subscription-based information technology arrangements 1 for software. 2 2. On or after July 1, 2026, a city or county shall not 3 issue bonds or other indebtedness payable from an ad valorem 4 property tax levy for the purpose of funding the general 5 operations of the city or general operations of the county, as 6 applicable, or otherwise use proceeds from the sale of bonds or 7 issuance of other indebtedness to fund general operations. 8 3. The department of management shall adopt rules under 9 chapter 17A to implement this section. 10 Sec. 95. PROPERTY TAXATION RATES —— STUDY COMMITTEE. 11 1. a. The legislative council is requested to establish 12 a legislative study committee during the 2026 legislative 13 interim and the 2027 legislative interim to examine appropriate 14 rates of property taxation imposed by governmental entities 15 following the adjustments to assessment limitations and levy 16 rate limitations made in this Act and determine an alternative 17 methodology and period of time to increase the percentage of 18 actual value at which residential and multiresidential property 19 are subject to tax under section 441.21, subsections 4 and 13, 20 from seventy-five percent to one hundred percent. 21 b. The study committee shall consist of the following voting 22 members of the general assembly: 23 (1) Two members of the senate appointed by the majority 24 leader of the senate. 25 (2) One member of the senate appointed by the minority 26 leader of the senate. 27 (3) Two members of the house of representatives appointed by 28 the speaker of the house of representatives. 29 (4) One member of the house of representatives appointed by 30 the minority leader of the house of representatives. 31 2. The committee shall make recommendations to and file a 32 report with the general assembly relating to the appropriate 33 rates of property taxation imposed by governmental entities 34 and appropriate assessment limitations for residential and 35 -67- LSB 5195SV (2) 91 md/jh 67/ 117

S.F. 2472 multiresidential property following enactment of this Act, no 1 later than January 15, 2028. 2 Sec. 96. EFFECTIVE DATE. The following take effect January 3 1, 2027: 4 1. The section of this division of this Act amending section 5 176A.10. 6 2. The section of this division of this Act amending section 7 312.2. 8 Sec. 97. APPLICABILITY. The following apply to fiscal years 9 beginning on or after July 1, 2027: 10 1. The section of this division of this Act amending section 11 176A.10. 12 2. The section of this division of this Act amending section 13 312.2. 14 DIVISION IX 15 LOCAL SALES AND SERVICES TAX 16 Sec. 98. Section 423B.1, subsection 5, paragraph d, Code 17 2026, is amended to read as follows: 18 d. The rate of a local sales and services tax shall be 19 either one percent or one and one-half percent. 20 Sec. 99. Section 423B.1, subsection 6, paragraph a, 21 subparagraph (1), Code 2026, is amended to read as follows: 22 (1) (a) A local option tax may be repealed or the rate of 23 the local vehicle tax increased or decreased or the use of a 24 local option tax revenue changed after an election at which a 25 majority of those voting on the question of repeal or rate or 26 use change favors the repeal or rate or use change. 27 (b) The date on which the repeal, rate change , or use 28 change is to take effect shall not be earlier than ninety days 29 following the election. The election at which the question 30 of repeal , or rate change, or use change is offered shall 31 be called and held in the same manner and under the same 32 conditions as provided in subsections 4 and 5 for the election 33 on the imposition of the local option tax. However, in the 34 case of a local sales and services tax where the tax has not 35 -68- LSB 5195SV (2) 91 md/jh 68/ 117

S.F. 2472 been imposed countywide, the question of repeal or imposition , 1 rate change, or use change shall be voted on only by the 2 registered voters of the areas of the county where the tax has 3 been imposed or has not been imposed, as appropriate. 4 (c) The governing body of the city or unincorporated area 5 where the local sales and services tax is imposed may, upon its 6 own motion, request the county commissioner of elections to 7 hold an election in the city, or portion thereof located in the 8 county, or unincorporated area, as appropriate, on the question 9 of the change in use of local sales and services tax revenues. 10 The election may be held at any time but not sooner than sixty 11 days following publication of the ballot proposition. If 12 a majority of those voting in the city, or portion thereof 13 located in the county, or unincorporated area on the change 14 in use favors the change, the governing body of that area 15 shall change the use to which the revenues shall be used. The 16 Subject to paragraph “d” , and section 423B.7, subsection 7, 17 paragraph “b” , the ballot proposition shall list the present 18 use of the revenues, the proposed use, and the date after which 19 revenues received will be used for the new use. 20 Sec. 100. Section 423B.1, subsection 6, Code 2026, is 21 amended by adding the following new paragraph: 22 NEW PARAGRAPH . d. For amendments to local sales and 23 services tax revenue purpose statements approved at election 24 on or after the effective date of this division of this Act, 25 if the existing revenue purpose statement expressly provides 26 for an amount or percentage of revenue for uses related to 27 road construction, repair, or maintenance, the amended revenue 28 purpose statement shall require amounts or percentages of 29 revenue equal to or greater than those in the existing revenue 30 purpose statement for such uses. 31 Sec. 101. EFFECTIVE DATE. This division of this Act, being 32 deemed of immediate importance, takes effect upon enactment. 33 DIVISION X 34 ADJUSTMENTS TO MOTOR VEHICLE REGISTRATION FEES AND FUEL TAXES 35 -69- LSB 5195SV (2) 91 md/jh 69/ 117

S.F. 2472 Sec. 102. Section 321.116, Code 2026, is amended to read as 1 follows: 2 321.116 Battery electric and plug-in hybrid electric motor 3 vehicle fees. 4 1. For each battery electric motor vehicle subject to an 5 annual registration fee under section 321.109, subsection 1 , 6 paragraph “a” , and operated on the public highways of this 7 state, the owner shall pay an annual battery electric motor 8 vehicle registration fee, which shall be in addition to the 9 annual registration fee imposed for the vehicle under section 10 321.109, subsection 1 , paragraph “a” . For purposes of this 11 subsection , “battery electric motor vehicle” means a motor 12 vehicle equipped with electrical drivetrain components and not 13 equipped with an internal combustion engine, that is propelled 14 exclusively by one or more electrical motors using electrical 15 energy stored in a battery or other energy storage device 16 that can be recharged by plugging into an electrical outlet 17 or electric vehicle charging station. The amount of the fee 18 shall be is one hundred thirty dollars , subject to adjustment 19 pursuant to section 321.118 . 20 2. For each plug-in hybrid electric motor vehicle subject to 21 an annual registration fee under section 321.109, subsection 22 1 , paragraph “a” , and operated on the public highways of this 23 state, the owner shall pay an annual plug-in hybrid electric 24 motor vehicle registration fee, which shall be in addition 25 to the annual registration fee imposed for the vehicle under 26 section 321.109, subsection 1 , paragraph “a” . For purposes of 27 this subsection , “plug-in hybrid electric motor vehicle” means a 28 motor vehicle equipped with electrical drivetrain components, 29 an internal combustion engine, and a battery or other energy 30 storage device that can be recharged by plugging into an 31 electrical outlet or electric vehicle charging station. The 32 amount of the fee shall be is sixty-five dollars , subject to 33 adjustment pursuant to section 321.118 . 34 Sec. 103. Section 321.117, subsection 2, Code 2026, is 35 -70- LSB 5195SV (2) 91 md/jh 70/ 117

S.F. 2472 amended to read as follows: 1 2. In addition to the fee required for a motorcycle under 2 subsection 1 , the owner of a motorcycle that is a battery 3 electric motor vehicle or plug-in hybrid electric motor 4 vehicle, as those terms are defined in section 321.116 , shall 5 pay an annual electric motorcycle registration fee. The amount 6 of the fee shall be is nine dollars , subject to adjustment 7 pursuant to section 321.118 . 8 Sec. 104. NEW SECTION . 321.118 Electric motor vehicle 9 registration fee adjustments. 10 1. a. The electric motor vehicle registration fees imposed 11 under section 321.116 and section 321.117, subsection 2, shall 12 be adjusted annually beginning July 1 in accordance with this 13 section to reflect the increase, if any, in the consumer price 14 index for all urban consumers. 15 b. Notwithstanding paragraph “a” , a fee shall not be 16 adjusted if any of the following occur: 17 (1) The general assembly nullifies the adjustment by joint 18 resolution, signed by the governor on or before April 30 19 preceding the adjustment. 20 (2) The fee was adjusted under this section each of the 21 preceding three years. 22 (3) The change in the consumer price index for all urban 23 consumers for the calendar year ending on the most recent 24 December 31 was zero or less than zero. 25 2. a. On or before January 15 each year, the department 26 shall calculate the adjusted fees in accordance with subsection 27 3 and submit a report with the adjusted fees in an electronic 28 format to all of the following: 29 (1) The general assembly. Copies of the report shall also 30 be sent by electronic mail to the co-chairpersons of the joint 31 appropriations subcommittee on transportation, infrastructure, 32 and capitals, the chairpersons of the senate and house standing 33 committees on transportation, and the chairpersons of the 34 senate and house standing committees on ways and means. 35 -71- LSB 5195SV (2) 91 md/jh 71/ 117

S.F. 2472 (2) The director of the department of management. 1 b. The report required by this subsection may be submitted 2 jointly with the department of revenue’s report required under 3 section 452A.3A. 4 3. a. The department shall calculate the adjusted fees 5 by multiplying the applicable fee in effect with one of the 6 following, as applicable: 7 (1) The sum of one plus the percentage change, expressed as 8 a decimal, in the consumer price index for all urban consumers 9 for the calendar year ending on the most recent December 31, 10 as published in the federal register by the United States 11 department of labor, bureau of labor statistics, if the change 12 is more than zero percent but less than three percent. 13 (2) One and three one-hundredths, if the percentage 14 change in the consumer price index for all urban consumers 15 for the calendar year ending on the most recent December 31, 16 as published in the federal register by the United States 17 department of labor, bureau of labor statistics, is three 18 percent or more. 19 b. (1) The adjusted fees shall be rounded to the nearest 20 whole dollar. 21 (2) When rounded to the nearest whole dollar, if the 22 adjusted annual electric motorcycle registration fee under 23 section 321.117, subsection 2, does not result in an increase, 24 the department shall use the unrounded adjusted fee as the fee 25 in effect when the department calculates the next adjusted fee. 26 4. The department shall adopt rules pursuant to chapter 17A 27 to administer this section. 28 Sec. 105. Section 452A.3, Code 2026, is amended by adding 29 the following new subsection: 30 NEW SUBSECTION . 01. The excise taxes imposed in this 31 section are subject to adjustment pursuant to section 452A.3A. 32 Sec. 106. NEW SECTION . 452A.3A Excise tax adjustments. 33 1. a. The excise taxes imposed under sections 452A.3 34 and 452A.41 shall be adjusted annually in accordance with 35 -72- LSB 5195SV (2) 91 md/jh 72/ 117

S.F. 2472 this section to reflect the increase, if any, in the consumer 1 price index for all urban consumers. The adjusted excise 2 taxes shall be imposed for twelve months beginning each July 1 3 after the adjusted excise tax is calculated pursuant to this 4 section. 5 b. Notwithstanding paragraph “a” , an excise tax shall not be 6 adjusted if any of the following occur: 7 (1) The general assembly nullifies the adjustment by joint 8 resolution, signed by the governor on or before April 30 9 preceding the adjustment. 10 (2) The excise tax was adjusted under this section each of 11 the preceding three years. 12 (3) The change in the consumer price index for all urban 13 consumers for the calendar year ending on the most recent 14 December 31 was zero or less than zero. 15 2. a. On or before January 15 each year, the department 16 shall calculate the adjusted excise taxes in accordance with 17 subsection 3 and submit a report with the adjusted excise taxes 18 in an electronic format to all of the following: 19 (1) The general assembly. Copies of the report shall also 20 be sent by electronic mail to the co-chairpersons of the joint 21 appropriations subcommittee on transportation, infrastructure, 22 and capitals, the chairpersons of the senate and house standing 23 committees on transportation, and the chairpersons of the 24 senate and house standing committees on ways and means. 25 (2) The director of the department of management. 26 b. The report required by this subsection may be submitted 27 jointly with the department of transportation’s report required 28 under section 321.118. 29 3. a. The department shall calculate the adjusted excise 30 taxes by multiplying the applicable excise tax in effect for 31 the twelve-month period ending on June 30 with one of the 32 following, as applicable: 33 (1) The sum of one plus the percentage change, expressed as 34 a decimal, in the consumer price index for all urban consumers 35 -73- LSB 5195SV (2) 91 md/jh 73/ 117

S.F. 2472 for the calendar year ending on the most recent December 31, 1 as published in the federal register by the United States 2 department of labor, bureau of labor statistics, if the change 3 is more than zero percent but less than three percent. 4 (2) One and three one-hundredths, if the percentage 5 change in the consumer price index for all urban consumers 6 for the calendar year ending on the most recent December 31, 7 as published in the federal register by the United States 8 department of labor, bureau of labor statistics, is three 9 percent or more. 10 b. The adjusted excise taxes imposed shall be rounded to the 11 nearest one-tenth of one cent. 12 Sec. 107. Section 452A.41, subsection 1, Code 2026, is 13 amended to read as follows: 14 1. An excise tax of two and six-tenths cents is imposed on 15 each kilowatt hour of electric fuel delivered or placed into 16 the battery or other energy storage device of an electric motor 17 vehicle at a location in this state other than a residence. 18 This excise tax is subject to adjustment pursuant to section 19 452A.3A. 20 Sec. 108. EFFECTIVE DATE. This division of this Act takes 21 effect January 1, 2027. 22 DIVISION XI 23 OFFICE OF THE ASSESSOR —— BUDGET AND LEVY 24 Sec. 109. Section 441.16, subsection 2, Code 2026, is 25 amended by adding the following new paragraph: 26 NEW PARAGRAPH . c. For fiscal years beginning on or after 27 July 1, 2027, expenses of the office of the assessor, the 28 examining board, and the board of review related to duties 29 or expenses authorized to be paid using funds levied under 30 sections 96.31, 97B.9, and 97C.10 shall not be paid from the 31 levy under subsection 5. 32 Sec. 110. Section 441.16, subsection 5, paragraph a, Code 33 2026, is amended to read as follows: 34 a. (1) (a) Any For fiscal years beginning before July 1, 35 -74- LSB 5195SV (2) 91 md/jh 74/ 117

S.F. 2472 2027, any tax for the maintenance of the office of assessor 1 and other assessment procedure shall be levied only upon the 2 property in the area assessed by the assessor, and such tax 3 levy shall not exceed sixty-seven and one-half cents per 4 thousand dollars of assessed value in the assessing area. 5 (b) For the fiscal year beginning July 1, 2027, any tax for 6 the maintenance of the office of assessor and other assessment 7 procedure shall be levied only upon the property in the area 8 assessed by the assessor, and such tax levy shall not exceed 9 a rate per one thousand dollars of assessed value in the 10 assessing area that is equal to one thousand multiplied by 11 the quotient of one hundred two percent of the current fiscal 12 year’s actual property tax dollars certified for such levy, 13 excluding the amounts attributable to the types of expenses 14 described in subsection 2, paragraph “c” , divided by the total 15 assessed value used to calculate such taxes for the budget 16 year. 17 (c) For each fiscal year beginning on or after July 1, 2028, 18 any tax for the maintenance of the office of assessor and other 19 assessment procedure shall be levied only upon the property in 20 the area assessed by the assessor, and such tax levy shall not 21 exceed a rate per one thousand dollars of assessed value in 22 the assessing area that is equal to one thousand multiplied by 23 the quotient of one hundred two percent of the current fiscal 24 year’s actual property tax dollars certified for such levy 25 divided by the total assessed value used to calculate such 26 taxes for the budget year. 27 (d) For purposes of this subparagraph, “budget year” and 28 “current fiscal year” mean the same as defined in section 29 331.423. 30 (2) The county treasurer shall credit the sums received 31 from such levy to a separate fund to be known as the assessment 32 expense fund and from which fund all expenses incurred under 33 this chapter shall be paid. In the case of a county where there 34 is more than one assessor the treasurer shall maintain separate 35 -75- LSB 5195SV (2) 91 md/jh 75/ 117

S.F. 2472 assessment expense funds for each assessor. 1 Sec. 111. Section 441.16, subsection 6, Code 2026, is 2 amended to read as follows: 3 6. The assessor shall not issue requisitions so as to 4 increase the total expenditures budgeted for the operation of 5 the assessor’s office. However, for purposes of promoting 6 operational efficiency, the assessor shall , except as provided 7 in subsection 2, paragraph “c” , have authority to transfer 8 funds budgeted for specific items for the operation of the 9 assessor’s office from one unexpended balance to another; such 10 transfer shall not be made so as to increase the total amount 11 budgeted for the operation of the office of assessor, and no 12 funds shall be used to increase the salary of the assessor or 13 the salaries of permanent deputy assessors. The assessor shall 14 issue requisitions for the examining board and for the board of 15 review on order of the chairperson of each board and for costs 16 and expenses incident to assessment appeals, only on order of 17 the city legal department, in the case of cities and of the 18 county attorney in the case of counties. 19 Sec. 112. EFFECTIVE DATE. This division of this Act takes 20 effect January 1, 2027. 21 Sec. 113. APPLICABILITY. This division of this Act applies 22 to property taxes due and payable in fiscal years beginning on 23 or after July 1, 2027. 24 DIVISION XII 25 REGIONAL TRANSIT DISTRICT LEVY 26 Sec. 114. Section 28M.5, subsection 1, Code 2026, is amended 27 to read as follows: 28 1. a. The commission, with the approval of the board of 29 supervisors of participating counties and the city council 30 of participating cities in the chapter 28E agreement, may , 31 subject to paragraph “b” , levy annually a tax not to exceed 32 ninety-five eighty cents per thousand dollars of the assessed 33 value of all taxable property in a regional transit district 34 to the extent provided in this section . The chapter 28E 35 -76- LSB 5195SV (2) 91 md/jh 76/ 117

S.F. 2472 agreement may authorize the commission to levy the tax at 1 different rates within the participating cities and counties in 2 amounts sufficient to meet the revenue responsibilities of such 3 cities and counties as allocated in the budget adopted by the 4 commission. However, for a city participating in a regional 5 transit district, the total of all the tax levies imposed in 6 the city pursuant to section 384.12, subsection 1 , paragraph 7 “b” , and this section shall not exceed the aggregate of 8 ninety-five eighty cents per thousand dollars of the assessed 9 value of all taxable property in the participating city. 10 b. For each fiscal year beginning on or after July 1, 11 2027, the sum of property tax dollars levied for the regional 12 transit district under this subsection and property tax dollars 13 received by the regional transit district from participating 14 cities and counties shall not exceed an amount equal to one 15 hundred five percent of the sum of property tax dollars levied 16 for the regional transit district under this subsection for 17 the immediately preceding fiscal year and property tax dollars 18 received by the regional transit district from participating 19 cities and counties for the immediately preceding fiscal year. 20 Sec. 115. Section 384.12, subsection 1, Code 2026, is 21 amended to read as follows: 22 1. a. A tax for the operation and maintenance of a 23 municipal transit system or for operation and maintenance of a 24 regional transit district, and for the creation of a reserve 25 fund for the system or district, in an amount not to exceed 26 ninety-five eighty cents per thousand dollars of assessed 27 value each year, when the revenues from the transit system or 28 district are insufficient for such purposes. In addition to 29 the levy rate limitation, for each fiscal year beginning on or 30 after July 1, 2027, the sum of property tax dollars levied for 31 the municipal transit system under this paragraph shall not 32 exceed an amount equal to one hundred five percent of the sum 33 of property tax dollars levied for the municipal transit system 34 under this paragraph for the immediately preceding fiscal year. 35 -77- LSB 5195SV (2) 91 md/jh 77/ 117

S.F. 2472 b. A tax for the operation and maintenance of a regional 1 transit district, and for the creation of a reserve fund for 2 the district under chapter 28M, in an amount not to exceed 3 eighty cents per thousand dollars of assessed value each year, 4 when the revenues from the district are insufficient for such 5 purposes. 6 Sec. 116. EFFECTIVE DATE. This division of this Act takes 7 effect January 1, 2027. 8 Sec. 117. APPLICABILITY. This division of this Act applies 9 to property taxes due and payable in fiscal years beginning on 10 or after July 1, 2027. 11 DIVISION XIII 12 UTILITY REPLACEMENT TAX TASK FORCE 13 Sec. 118. Section 437A.15, subsection 7, paragraph b, Code 14 2026, is amended to read as follows: 15 b. The task force shall study the accuracy of the taxes 16 imposed under this chapter and chapter 437B, ways to modernize 17 the administration of such taxes, methods of simplifying 18 administration of the replacement taxes, elimination of 19 property taxes imposed under this chapter or chapter 437B, 20 simplification of thresholds for replacement tax rate 21 adjustments while retaining tax stability, the effects of 22 the replacement such taxes under this chapter and chapter 23 437B on local taxing authorities, local taxing districts, 24 consumers, and taxpayers through January 1, 2024 December 31, 25 2026, including ways to maintain continuity for local taxing 26 districts and consumers and ways to provide a competitive 27 and equitable tax environment for taxpayers . If the task 28 force recommends modifications to the replacement tax that 29 will further the purposes of tax neutrality for local taxing 30 authorities, local taxing districts, taxpayers, and consumers, 31 consistent with the stated purposes of this chapter taxes , the 32 department of management shall transmit those recommendations 33 to the general assembly. 34 Sec. 119. EFFECTIVE DATE. This division of this Act, being 35 -78- LSB 5195SV (2) 91 md/jh 78/ 117

S.F. 2472 deemed of immediate importance, takes effect upon enactment. 1 DIVISION XIV 2 LOCAL GOVERNMENT BUDGET STATEMENTS 3 Sec. 120. Section 24.2A, subsection 2, paragraph a, Code 4 2026, is amended to read as follows: 5 a. On or before 4:00 p.m. on March 5 of each year, each 6 political subdivision shall file with the department of 7 management a report containing all necessary information 8 for the department of management to compile and calculate 9 amounts required to be included in the statements mailed under 10 paragraph “b” or provided under paragraph “c” . If a county 11 or city fails to file all necessary information with the 12 department of management by 4:00 p.m. on March 5, taxes levied 13 by the county or city shall be limited to the prior year’s 14 budget amount. 15 Sec. 121. Section 24.2A, subsection 2, paragraph b, 16 unnumbered paragraph 1, Code 2026, is amended to read as 17 follows: 18 Not later than March 15, the county auditor, using 19 information compiled and calculated by the department of 20 management under paragraph “a” , shall send to each property 21 owner or taxpayer within the county by regular mail an 22 individual or post under paragraph “c” a statement containing 23 all of the following for each of the political subdivisions 24 comprising the owner’s or taxpayer’s taxing district: 25 Sec. 122. Section 24.2A, subsection 2, Code 2026, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . c. For budgets for fiscal years beginning 28 on or after July 1, 2027, statements under paragraph “b” , in 29 lieu of regular mail, may be provided by posting the statement 30 not later than March 15 on the political subdivision’s 31 internet site for public viewing and shall be maintained on 32 the political subdivision’s internet site with all such prior 33 year statements. Additionally, if the political subdivision 34 maintains a social media account on one or more social media 35 -79- LSB 5195SV (2) 91 md/jh 79/ 117

S.F. 2472 applications, the statement or an electronic link to the 1 statement shall be posted on each such account on a date no 2 later than March 15. 3 Sec. 123. Section 24.2A, subsection 3, Code 2026, is amended 4 to read as follows: 5 3. The department of management shall prescribe the form 6 for the report required under subsection 2 , paragraph “a” , the 7 statements required to be mailed under subsection 2 , paragraph 8 “b” , or provided under subsection 2, paragraph “c” , and the 9 public hearing notice required under subsection 4 , paragraph 10 “b” . 11 Sec. 124. Section 24.2A, subsection 4, paragraph b, 12 subparagraph (4), subparagraph division (a), Code 2026, is 13 amended to read as follows: 14 (a) Notice of the public hearing was provided to each 15 property owner and each taxpayer within the political 16 subdivision in statements required under subsection 2 , 17 paragraph “b” . 18 Sec. 125. Section 24.3, unnumbered paragraph 1, Code 2026, 19 is amended to read as follows: 20 A municipality shall not certify or levy in any fiscal year 21 any tax on property subject to taxation unless and until the 22 following estimates have been made, filed, and considered, 23 and for school districts, the individual statements have been 24 mailed or posted, as applicable, and public hearings held, as 25 provided in this chapter : 26 Sec. 126. Section 331.434, subsection 3, Code 2026, is 27 amended to read as follows: 28 3. Following, and not until, the requirements of section 29 24.2A are completed, the board shall set a time and place for 30 a public hearing on the budget before the final certification 31 date and shall publish notice of the hearing not less than 32 ten nor more than twenty days prior to the hearing in the 33 county newspapers selected under chapter 349 . A summary of 34 the proposed budget and a description of the procedure for 35 -80- LSB 5195SV (2) 91 md/jh 80/ 117

S.F. 2472 protesting the county budget under section 331.436 , in the form 1 prescribed by the director of the department of management, 2 shall be included in the notice. Proof of publication of 3 the notice under this subsection 3 shall be filed with and 4 preserved by the county auditor. A levy is not valid unless 5 and until the notice is published and individual statements 6 under section 24.2A are mailed or posted . The department of 7 management shall prescribe the form for the public hearing 8 notice for use by counties. 9 Sec. 127. Section 331.435, subsection 2, Code 2026, is 10 amended to read as follows: 11 2. The board shall prepare and adopt a budget amendment in 12 the same manner as the original budget as provided in section 13 331.434 , but excluding the requirements for mailing individual 14 statements under section 24.2A , and the amendment is subject 15 to protest as provided in section 331.436 , except that the 16 director of the department of management may by rule provide 17 that amendments of certain types or up to certain amounts may 18 be made without public hearing and without being subject to 19 protest. A county budget for the ensuing fiscal year shall be 20 amended by May 31 to allow time for a protest hearing to be 21 held and a decision rendered before June 30. An amendment of 22 a budget after May 31 which is properly appealed but without 23 adequate time for hearing and decision before June 30 is void. 24 Sec. 128. Section 384.17, Code 2026, is amended to read as 25 follows: 26 384.17 Levy by county. 27 At the time required by law, the county board of supervisors 28 shall levy the taxes necessary for each city fund for the 29 following fiscal year. The levy must be as shown in the 30 adopted city budget and as certified by the clerk, subject to 31 any changes made after a protest hearing, and any additional 32 tax rates approved at a city election. A city levy is not valid 33 until proof of publication or posting of notice of a budget 34 hearing under section 384.16, subsection 3 , is filed with the 35 -81- LSB 5195SV (2) 91 md/jh 81/ 117

S.F. 2472 county auditor and individual statements are mailed or posted 1 under section 24.2A . 2 Sec. 129. Section 384.18, subsection 2, Code 2026, is 3 amended to read as follows: 4 2. A budget amendment must be prepared and adopted in the 5 same manner as the original budget, as provided in section 6 384.16 , excluding the requirement for the mailing of individual 7 statements under section 24.2A , and is subject to protest as 8 provided in section 384.19 , except that the committee may by 9 rule provide that amendments of certain types or up to certain 10 amounts may be made without public hearing and without being 11 subject to protest. A city budget shall be amended by May 12 31 of the current fiscal year to allow time for a protest 13 hearing to be held and a decision rendered before June 30. The 14 amendment of a budget after May 31, which is properly appealed 15 but without adequate time for hearing and decision before June 16 30 is void. 17 Sec. 130. APPLICABILITY. This division of this Act applies 18 to taxpayer statements under section 24.2A for budgets for 19 fiscal years beginning on or after July 1, 2027. 20 DIVISION XV 21 REAL ESTATE TRANSFER TAX FORMS 22 Sec. 131. Section 428A.7, Code 2026, is amended to read as 23 follows: 24 428A.7 Forms provided by director of revenue. 25 The director of revenue shall prescribe the form of the 26 declaration of value and shall include an appropriate place 27 for the inclusion of special facts and circumstances relating 28 to the actual sales price in real estate transfers including 29 but not limited to factors that distort market value such as 30 built-to-suit sales, sale-leaseback sales, leased fee sales, 31 and the abnormal transactions identified in section 441.21, 32 subsection 1, paragraph “b” , subparagraph (1) . The director 33 shall provide an adequate number of the declaration of value 34 forms to each county recorder in the state. If the declaration 35 -82- LSB 5195SV (2) 91 md/jh 82/ 117

S.F. 2472 of value form requires or provides for the inclusion of the 1 social security number or federal tax identification number of 2 a seller or buyer, the department shall provide that the social 3 security number or federal tax identification number remains 4 confidential and cannot be obtained by public examination. 5 DIVISION XVI 6 DIVISION OF REVENUE —— DATA CENTERS 7 Sec. 132. Section 403.19, subsection 2, paragraph a, Code 8 2026, is amended to read as follows: 9 a. That portion of the taxes each year in excess of such 10 amount shall be allocated to and when collected be paid into 11 a special fund of the municipality to pay the principal of 12 and interest on loans, moneys advanced to, or indebtedness, 13 whether funded, refunded, assumed, or otherwise, including 14 bonds issued under the authority of section 403.9, subsection 15 1 , incurred by the municipality to finance or refinance, in 16 whole or in part, an urban renewal project within the area, 17 and to provide assistance for low and moderate income family 18 housing as provided in section 403.22 . However, except 19 as provided in paragraph “b” , taxes for the regular and 20 voter-approved physical plant and equipment levy of a school 21 district imposed pursuant to section 298.2 , foundation property 22 taxes of a school district imposed under section 257.3 levied 23 against property that is a qualified data center or upon 24 which a qualified data center is operated, and taxes for the 25 instructional support program of a school district imposed 26 pursuant to section 257.19 , taxes for the payment of bonds 27 and interest of each taxing district, and taxes imposed under 28 section 346.27, subsection 22 , related to joint county-city 29 buildings shall be collected against all taxable property 30 within the taxing district without limitation by the provisions 31 of this subsection . For purposes of this paragraph, “qualified 32 data center” means a data center, as defined in section 423.3, 33 subsection 95, for which site preparation activities, as 34 defined in section 423.3, subsection 95, began on or after the 35 -83- LSB 5195SV (2) 91 md/jh 83/ 117

S.F. 2472 effective date of this division of this Act. 1 Sec. 133. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. 3 Sec. 134. APPLICABILITY. This division of this Act applies 4 to property taxes due and payable in fiscal years beginning on 5 or after July 1, 2027. 6 DIVISION XVII 7 MOBILE HOME, MANUFACTURED HOME, AND MODULAR HOME TAXES 8 Sec. 135. Section 29C.24, subsection 3, paragraph a, 9 subparagraph (6), Code 2026, is amended to read as follows: 10 (6) The assessment of property taxes by the department 11 of revenue under sections 428.24 through 428.26 , 428.28 , and 12 428.29 , or chapters 434 , 435 , and 437 through 438 , or by a 13 local assessor under another provision of law, on property 14 brought into the state to aid in the performance of disaster 15 or emergency-related work during a disaster response period if 16 such property does not remain in the state after the conclusion 17 of the disaster response period. 18 Sec. 136. Section 321.24, subsection 1, Code 2026, is 19 amended to read as follows: 20 1. Upon receipt of the application for title and payment of 21 the required fees for a motor vehicle, trailer, or semitrailer, 22 the county treasurer or the department shall, when satisfied 23 as to the application’s genuineness and regularity, and, in 24 the case of a mobile home or manufactured home, that taxes are 25 not owing under chapter 423 or under chapter 435 , Code 2026, 26 issue a certificate of title and, except for a mobile home 27 or manufactured home, a registration receipt, and shall file 28 the application, the manufacturer’s or importer’s certificate, 29 the certificate of title, or other evidence of ownership, 30 as prescribed by the department. The registration receipt 31 shall be delivered to the owner and shall contain upon its 32 face the date issued, the name and address of the owner, the 33 registration number assigned to the vehicle, the amount of the 34 fee paid, the type of fuel used, a description of the vehicle 35 -84- LSB 5195SV (2) 91 md/jh 84/ 117

S.F. 2472 as determined by the department, and a form for notice of 1 transfer of the vehicle. The name and address of any lessee of 2 the vehicle shall not be printed on the registration receipt or 3 certificate of title. Up to three owners may be listed on the 4 registration receipt and certificate of title. 5 Sec. 137. Section 321.30, subsection 1, paragraph j, Code 6 2026, is amended to read as follows: 7 j. In the case of a mobile home or manufactured home, that 8 taxes are owing under chapter 435 , Code 2026, for a previous 9 year. 10 Sec. 138. Section 321.46, subsection 2, Code 2026, is 11 amended to read as follows: 12 2. Upon filing the application for a new initial 13 registration and a new title, the applicant shall pay a title 14 fee of thirty dollars, an annual registration fee prorated 15 for the remaining unexpired months of the registration year, 16 and a fee for new registration if applicable. A manufacturer 17 applying for a certificate of title pursuant to section 322G.12 18 shall pay a title fee of twenty dollars. However, a title fee 19 shall not be charged to a manufactured or mobile home retailer 20 applying for a certificate of title for a used mobile home or 21 manufactured home, titled in Iowa, as required under section 22 321.45, subsection 4 . The county treasurer, if satisfied of 23 the genuineness and regularity of the application, and in the 24 case of a mobile home or manufactured home, that taxes are not 25 owing under chapter 435 , Code 2026, and that the applicant 26 has complied with all the requirements of this chapter , shall 27 issue a new certificate of title and, except for a mobile home, 28 manufactured home, or a vehicle returned to and accepted by a 29 manufacturer as described in section 322G.12 , a registration 30 card to the purchaser or transferee, shall cancel the prior 31 registration for the vehicle, and shall forward the necessary 32 copies to the department on the date of issuance, as prescribed 33 in section 321.24 . Mobile homes or manufactured homes titled 34 under chapter 448 that have been subject under section 446.18 35 -85- LSB 5195SV (2) 91 md/jh 85/ 117

S.F. 2472 to a public bidder sale in a county shall be titled in the 1 county’s name, with no fee, and the county treasurer shall 2 issue the title. 3 Sec. 139. Section 321.101, subsection 2, Code 2026, is 4 amended to read as follows: 5 2. The department shall cancel a certificate of title that 6 appears to have been improperly issued or fraudulently obtained 7 or, in the case of a mobile home or manufactured home, if 8 taxes were owing under chapter 435 , Code 2026, at the time the 9 certificate was issued and have not been paid. However, before 10 the certificate to a mobile home or manufactured home for which 11 taxes were owing can be canceled, notice and opportunity to pay 12 the taxes must be given to the person to whom the certificate 13 was issued. Upon cancellation of a certificate of title, the 14 department shall notify the county treasurer who issued it, who 15 shall enter the cancellation upon the records. The department 16 shall also notify the person to whom the certificate of title 17 was issued, as well as each lienholder who has a perfected 18 lien, of the cancellation and shall demand the surrender of the 19 certificate of title, but the cancellation shall not affect the 20 validity of any perfected lien. 21 Sec. 140. Section 321.123, subsection 2, paragraph b, Code 22 2026, is amended to read as follows: 23 b. A travel trailer may be stored under section 321.134 , 24 provided the travel trailer is not used for human habitation 25 for any period during storage and is not moved upon the 26 highways of the state. A travel trailer stored under section 27 321.134 is not subject to a manufactured or mobile home tax 28 assessed under chapter 435 . 29 Sec. 141. Section 331.429, subsection 1, paragraphs a and b, 30 Code 2026, are amended to read as follows: 31 a. Transfers from the general fund not to exceed in any year 32 the dollar equivalent of a tax of sixteen and seven-eighths 33 cents per thousand dollars of assessed value on all taxable 34 property in the county multiplied by the ratio of current 35 -86- LSB 5195SV (2) 91 md/jh 86/ 117

S.F. 2472 taxes actually collected and apportioned for the general basic 1 levy to the total general basic levy for the current year, 2 and an amount equivalent to the moneys derived by the general 3 fund from military service tax credits under chapter 426A , 4 manufactured or mobile home taxes under section 435.22 , and 5 delinquent taxes for prior years collected and apportioned to 6 the general basic fund in the current year, multiplied by the 7 ratio of sixteen and seven-eighths cents to three dollars and 8 fifty cents. The limit on transfers in this paragraph applies 9 only to property tax revenue and is not a limit on transfers of 10 revenue generated from sources other than property taxes. 11 b. Transfers from the rural services fund not to exceed 12 in any year the dollar equivalent of a tax of three dollars 13 and three-eighths cents per thousand dollars of assessed value 14 on all taxable property not located within the corporate 15 limits of a city in the county multiplied by the ratio of 16 current taxes actually collected and apportioned for the rural 17 services basic levy to the total rural services basic levy 18 for the current year and an amount equivalent to the moneys 19 derived by the rural services fund from military service tax 20 credits under chapter 426A , manufactured or mobile home taxes 21 under section 435.22 , and delinquent taxes for prior years 22 collected and apportioned to the rural services basic fund in 23 the current year, multiplied by the ratio of three dollars and 24 three-eighths cents to three dollars and ninety-five cents. 25 The limit on transfers in this paragraph applies only to 26 property tax revenue and is not a limit on transfers of revenue 27 generated from sources other than property taxes. 28 Sec. 142. Section 331.559, subsection 1, Code 2026, is 29 amended by striking the subsection. 30 Sec. 143. Section 331.653, subsection 17, Code 2026, is 31 amended by striking the subsection. 32 Sec. 144. Section 335.30A, subsection 2, Code 2026, is 33 amended to read as follows: 34 2. “Land-leased community” means any site, lot, field, 35 -87- LSB 5195SV (2) 91 md/jh 87/ 117

S.F. 2472 or tract of land under common ownership upon which ten or 1 more occupied manufactured homes are harbored, either free of 2 charge or for revenue purposes, and shall include any building, 3 structure, or enclosure used or intended for use as part of the 4 equipment of the land-leased community. The term “land-leased 5 community” shall not be construed to include homes, buildings, 6 or other structures temporarily maintained by any individual, 7 educational institution, or company on their own premises and 8 used exclusively to house their own labor or students. A 9 manufactured home located in a land-leased community shall be 10 taxed under section 435.22 considered for property tax purposes 11 as if the manufactured home were located in a mobile home park. 12 Sec. 145. Section 414.28A, subsection 3, Code 2026, is 13 amended to read as follows: 14 3. A manufactured home located in a land-leased community 15 shall be taxed under section 435.22 considered for property tax 16 purposes as if the manufactured home were located in a mobile 17 home park. 18 Sec. 146. Section 427A.1, subsection 1, paragraph c, Code 19 2026, is amended to read as follows: 20 c. Buildings, structures, or improvements, any of which are 21 constructed on or in the land, attached to the land, or placed 22 upon a foundation whether or not attached to the foundation. 23 However, property taxed mobile homes, manufactured homes, and 24 modular homes as defined under chapter 435 located in a mobile 25 home park or manufactured home community , property that is a 26 concrete batch plant as that term is defined in subsection 4 , 27 and to the extent provided in subsection 7 , property that is 28 transmission property shall not be assessed and taxed as real 29 property. 30 Sec. 147. Section 435.2, Code 2026, is amended to read as 31 follows: 32 435.2 Placement and taxation. 33 1. If and while a mobile home is placed outside a mobile 34 home park or manufactured home community , the home is to be 35 -88- LSB 5195SV (2) 91 md/jh 88/ 117

S.F. 2472 assessed and taxed as real estate. If and while a mobile home 1 is placed in a mobile home park or manufactured home community, 2 the home is exempt from property tax. 3 2. If and while a manufactured home is placed in a 4 manufactured home community or a mobile home park, the home 5 must be titled and is subject to the manufactured or mobile 6 home square foot exempt from property tax. If and while 7 a manufactured home is placed outside a manufactured home 8 community or a mobile home park, the home must be titled and is 9 to be assessed and taxed as real estate. 10 3. For the purposes of this chapter , a modular home shall 11 not be construed to be a mobile home or manufactured home. 12 If and while a modular home is placed inside or outside a 13 manufactured home community or a mobile home park, the home 14 shall be considered real property and is to be assessed and 15 taxed as real estate. However, if a modular home is placed in 16 a manufactured home community or mobile home park which was in 17 existence on or before January 1, 1998, that modular home shall 18 be subject to exempt from property tax pursuant to section 19 435.22 . This subsection shall not prohibit the location of a 20 modular home within a manufactured home community or mobile 21 home park. 22 Sec. 148. Section 435.23, Code 2026, is amended to read as 23 follows: 24 435.23 Exemptions —— prorating tax inventories . 25 1. The manufacturer’s and retailer’s inventory of mobile 26 homes, manufactured homes, or modular homes not in use as a 27 place of human habitation shall be exempt from the annual 28 property tax. All travel trailers, fifth-wheel travel 29 trailers, and towable recreational vehicles shall be exempt 30 from this tax. The homes, travel trailers, fifth-wheel travel 31 trailers, and towable recreational vehicles in the inventory 32 of manufacturers and retailers shall be exempt from personal 33 property tax. 34 2. The homes coming into Iowa from out of state and located 35 -89- LSB 5195SV (2) 91 md/jh 89/ 117

S.F. 2472 in a manufactured home community or mobile home park shall 1 be liable for the tax computed pro rata to the nearest whole 2 month, for the time the home is actually situated in Iowa. 3 Sec. 149. Section 435.24, Code 2026, is amended by striking 4 the section and inserting in lieu thereof the following: 5 435.24 Location of homes and reporting. 6 1. Upon issuance of a certificate of title or upon 7 transporting the home to a new site or to a location outside 8 of a manufactured home community or mobile home park, the home 9 owner shall file the address, township, and school district 10 of the location where the home is parked with the county 11 assessor’s office. Failure to comply is punishable as set out 12 in section 435.18. 13 2. Each manufactured home community or mobile home park 14 owner or manager shall notify monthly the county assessor 15 concerning any home arriving in or departing from the 16 manufactured home community or mobile home park. The records 17 of the community or park owner shall be open to inspection by a 18 duly authorized representative of any law enforcement agency. 19 The manufactured home community or mobile home park owner or 20 manager shall make an annual report to the county assessor due 21 June 1 of the homes sited in the manufactured home community or 22 mobile home park, listing the owner and mailing address of each 23 home located in the manufactured home community or mobile home 24 park. The report is delinquent if not filed with the county 25 assessor by June 30. 26 Sec. 150. Section 435.26A, subsection 3, Code 2026, is 27 amended to read as follows: 28 3. After the surrender of a manufactured home’s certificate 29 of title under this section , the manufactured home shall 30 continue to be taxed under section 435.22 and is not eligible 31 for the homestead tax exemption and credit or the military 32 service tax exemption and credit. A foreclosure action on a 33 manufactured home whose title has been surrendered under this 34 section shall be conducted as a real estate foreclosure. A tax 35 -90- LSB 5195SV (2) 91 md/jh 90/ 117

S.F. 2472 lien and its priority shall remain the same on a manufactured 1 home after its certificate of title has been surrendered. 2 Sec. 151. Section 435.27, subsections 1 and 3, Code 2026, 3 are amended to read as follows: 4 1. A mobile home or manufactured home converted to real 5 estate under section 435.26 may be reconverted to a home as 6 provided in this section when it is moved to a manufactured 7 home community or mobile home park or a manufactured or mobile 8 home retailer’s inventory. When the home is located within a 9 manufactured home community or mobile home park, the home shall 10 be taxed pursuant to exempt from property tax as provided in 11 section 435.22, subsection 1, paragraph “a” 435.2 . 12 3. After compliance with subsection 2 and receipt of the 13 title, the owner shall notify the assessor of the reconversion. 14 The assessor shall remove the assessed valuation of the home 15 from assessment rolls as of the succeeding January 1 when the 16 home becomes subject to exempt from taxation as provided under 17 section 435.24 435.2 . 18 Sec. 152. Section 445.1, subsection 8, Code 2026, is amended 19 to read as follows: 20 8. “Taxes” means an annual ad valorem tax, a special 21 assessment, a drainage tax, a rate or charge, and taxes on 22 homes pursuant to chapter 435 , Code 2026, which are collectible 23 by the county treasurer. 24 Sec. 153. Section 445.5, subsection 6, Code 2026, is amended 25 to read as follows: 26 6. The county treasurer shall deliver to the taxpayer a 27 receipt stating the year of tax, date of payment, a description 28 of the parcel, and the amount of taxes, interest, fees, and 29 costs paid when payment is made by cash tender. A receipt 30 for other payment tender types shall only be delivered upon 31 request. The receipt shall be in full for the first half, 32 second half, or full year amounts unless a payment is made 33 under section 445.36A or 435.24, subsection 6 . 34 Sec. 154. Section 445.57, subsection 1, Code 2026, is 35 -91- LSB 5195SV (2) 91 md/jh 91/ 117

S.F. 2472 amended to read as follows: 1 1. On or before the tenth day of each month, the county 2 treasurer shall apportion all taxes collected during the 3 preceding month, except partial payment amounts collected 4 pursuant to section 445.36A, subsection 1 , and partial payments 5 collected and not yet designated by the county treasurer 6 for apportionment pursuant to section 445.36A, subsection 7 2 , partial payments collected pursuant to section 435.24, 8 subsection 6 , paragraph “a” , and partial payments collected and 9 not yet designated by the county treasurer for apportionment 10 pursuant to section 435.24, subsection 6 , paragraph “b” , among 11 the several funds to which they belong according to the amount 12 levied for each fund, and shall apportion the interest, fees, 13 and costs on the taxes to the general fund, and shall enter 14 those amounts upon the treasurer’s cash account, and report the 15 amounts to the county auditor. 16 Sec. 155. Section 555B.2, subsection 1, Code 2026, is 17 amended to read as follows: 18 1. A real property owner may remove or cause to be removed 19 a mobile home and other personal property which is unlawfully 20 parked, placed, or abandoned on that real property, and may 21 cause the mobile home and personal property to be placed in 22 storage until the owner of the personal property pays a fair 23 and reasonable charge for removal, storage, or other expense 24 incurred, including reasonable attorney fees, or until a 25 judgment of abandonment is entered pursuant to section 555B.8 26 provided that there is no lien on the mobile home or personal 27 property other than a tax lien pursuant to chapter 435 , Code 28 2026 . For purposes of this chapter , a lien other than a tax 29 lien exists only if the real property owner receives notice 30 of a lien on the standardized registration form completed by 31 a tenant pursuant to section 562B.27, subsection 3 , or a lien 32 has been filed in state or county records on a date before the 33 mobile home is considered to be abandoned. The real property 34 owner or the real property owner’s agent is not liable for 35 -92- LSB 5195SV (2) 91 md/jh 92/ 117

S.F. 2472 damages caused to the mobile home and personal property by the 1 removal or storage unless the damage is caused willfully or by 2 gross negligence. 3 Sec. 156. Section 555C.1, subsection 5, paragraph b, Code 4 2026, is amended to read as follows: 5 b. A lien of record, other than a tax lien as provided in 6 chapter 435 , Code 2026, does not exist against the home. A 7 lien exists only if the real property owner receives notice of 8 a lien on the standardized registration form completed by an 9 owner or occupant pursuant to chapter 562B , or a lien has been 10 filed in the state or county records on a date before the home 11 is considered to be valueless. 12 Sec. 157. Section 555C.3, Code 2026, is amended to read as 13 follows: 14 555C.3 New title —— third party. 15 If a new title to a valueless home is to be issued to a 16 third party, the county treasurer shall issue a new title, 17 upon receipt of the affidavit required in section 555C.2 and 18 payment of a fee pursuant to section 321.47 . Any tax lien 19 levied pursuant to chapter 435 , Code 2026, is canceled and the 20 ownership interest of the previous owner or occupant of the 21 valueless home is terminated as of the date of issuance of 22 the new title. The new title owner shall take the title free 23 of all rights and interests even though the manufactured home 24 community or mobile home park owner fails to comply with the 25 requirements of this chapter or any judicial proceedings, if 26 the new title owner acts in good faith. 27 Sec. 158. REPEAL. Sections 435.22, 435.25, 435.29, and 28 435.33, Code 2026, are repealed. 29 Sec. 159. SAVINGS PROVISION. This division of this Act, 30 pursuant to section 4.13, does not affect the operation of or 31 prohibit the application of prior provisions of law or rules 32 adopted to administer the manufactured or mobile home tax 33 assessed under chapter 435 for taxes due and payable before 34 July 1, 2026. 35 -93- LSB 5195SV (2) 91 md/jh 93/ 117

S.F. 2472 DIVISION XVIII 1 ELDERLY AND DISABLED PROPERTY TAX CREDIT AND RENT REIMBURSEMENT 2 Sec. 160. Section 25B.7, subsection 2, paragraph b, Code 3 2026, is amended to read as follows: 4 b. Low-income property tax credit and elderly and disabled 5 property tax credit pursuant to sections 425.16 through 425.40 , 6 subject to the limitation of section 425.39, subsection 1 , 7 paragraph “b” . 8 Sec. 161. Section 425.17, subsection 2, paragraph a, Code 9 2026, is amended to read as follows: 10 a. “Claimant” means any of the following: 11 (1) A person filing a claim for credit under this subchapter 12 who has attained the age of sixty-five years but who has 13 not attained the age of seventy years on or before December 14 31 of the base year, a person filing a claim for credit or 15 reimbursement under this subchapter who is totally disabled 16 and was totally disabled on or before December 31 of the base 17 year, or a person filing a claim for reimbursement under this 18 subchapter who has attained the age of sixty-five years on or 19 before December 31 of the base year and who is domiciled in 20 this state at the time the claim is filed or at the time of the 21 person’s death in the case of a claim filed by the executor or 22 administrator of the claimant’s estate. 23 (2) A person filing a claim for credit or reimbursement 24 under this subchapter who has attained the age of twenty-three 25 years on or before December 31 of the base year or was a head 26 of household on December 31 of the base year, as defined in 27 the Internal Revenue Code, but has not attained the age or 28 disability status described in subparagraph (1) or the age 29 status and eligibility criteria of subparagraph (3), and is 30 domiciled in this state at the time the claim is filed or at the 31 time of the person’s death in the case of a claim filed by the 32 executor or administrator of the claimant’s estate, and was not 33 claimed as a dependent on any other person’s tax return for the 34 base year. 35 -94- LSB 5195SV (2) 91 md/jh 94/ 117

S.F. 2472 (3) A person filing a claim for credit under this subchapter 1 who has attained the age of seventy years on or before December 2 31 of the base year, who has a household income of less than 3 two hundred fifty percent of the federal poverty level, as 4 defined by the most recently revised poverty income guidelines 5 published by the United States department of health and human 6 services, and is domiciled in this state at the time the claim 7 is filed or at the time of the person’s death in the case of a 8 claim filed by the executor or administrator of the claimant’s 9 estate. 10 Sec. 162. Section 425.23, subsection 1, paragraph c, Code 11 2026, is amended by striking the paragraph. 12 Sec. 163. Section 425.23, subsection 4, paragraph a, Code 13 2026, is amended to read as follows: 14 a. For the base year beginning in the 1999 calendar year and 15 for each subsequent base year, the dollar amounts set forth in 16 subsection 1 , paragraphs “a” and “b” , and subsection subsections 17 1 and 3 shall be multiplied by the cumulative adjustment factor 18 for that base year. “Cumulative adjustment factor” means the 19 product of the annual adjustment factor for the 1998 base year 20 and all annual adjustment factors for subsequent base years. 21 The cumulative adjustment factor applies to the base year 22 beginning in the calendar year for which the latest annual 23 adjustment factor has been determined. 24 Sec. 164. Section 425.24, Code 2026, is amended to read as 25 follows: 26 425.24 Maximum property tax for purpose of credit or 27 reimbursement. 28 For claimants under section 425.17, subsection 2 , paragraph 29 “a” , subparagraphs (1) and (2), and for the calculation under 30 section 425.23, subsection 1 , paragraph “c” , subparagraph (1), 31 in In any case in which property taxes due or rent constituting 32 property taxes paid for any household exceeds one thousand 33 five hundred dollars, the amount of property taxes due or 34 rent constituting property taxes paid shall be deemed to have 35 -95- LSB 5195SV (2) 91 md/jh 95/ 117

S.F. 2472 been one thousand five hundred dollars for purposes of this 1 subchapter . 2 Sec. 165. Section 425.39, subsection 1, Code 2026, is 3 amended to read as follows: 4 1. a. The elderly and disabled property tax credit fund is 5 created. There is appropriated annually from the general fund 6 of the state to the department of revenue to be credited to the 7 elderly and disabled property tax credit fund, from funds not 8 otherwise appropriated, an amount sufficient to implement this 9 subchapter for credits for property taxes due for claimants 10 described in section 425.17, subsection 2 , paragraph “a” , 11 subparagraphs subparagraph (1) and (3), subject to paragraph 12 “b” . 13 b. Regardless of the amount of the credit determined under 14 section 425.23, subsection 1 , paragraph “c” , the amount paid by 15 the director of revenue to each county treasurer for credits 16 for claimants described under section 425.17, subsection 2 , 17 paragraph “a” , subparagraph (3), shall not exceed the amount 18 calculated for the claimant under section 425.23, subsection 1 , 19 paragraph “c” , subparagraph (1), and section 25B.7, subsection 20 1 , shall not apply to the amount of the credit in excess of the 21 amount paid by the director of revenue. 22 Sec. 166. EFFECTIVE DATE. This division of this Act takes 23 effect January 1, 2030. 24 Sec. 167. APPLICABILITY. 25 1. This division of this Act applies to claims under chapter 26 425, subchapter II, for credits against property taxes due and 27 payable in fiscal years beginning on or after July 1, 2030. 28 2. This division of this Act applies to claims under chapter 29 425, subchapter II, for reimbursement for rent constituting 30 property taxes paid in base years beginning on or after January 31 1, 2029. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -96- LSB 5195SV (2) 91 md/jh 96/ 117

S.F. 2472 This bill relates to state and local government taxes, 1 financial authority, and budgets. 2 DIVISION I —— COUNTY PROPERTY TAXES AND BUDGETS. Code 3 section 331.423 establishes a levy rate limitation for the 4 general county services levy and a limitation for the rural 5 county services levy. The bill modifies the general county 6 services levy rate limitation for the fiscal year beginning 7 July 1, 2027, to be a levy rate not to exceed the greater of: 8 (1) a levy rate per $1,000 of assessed value equal to 1,000 9 multiplied by the quotient of 102 percent of the current fiscal 10 year’s (immediately preceding fiscal year) actual property tax 11 dollars certified for levy for general county services divided 12 by the remainder of the total assessed value used to calculate 13 such taxes for the budget year minus value attributable to new 14 valuation, as defined in the bill; and (2) a levy rate per 15 $1,000 of assessed value that results in an amount of actual 16 property tax dollars certified for levy for general county 17 services equal to 100.5 percent of the actual property tax 18 dollars certified for such levy for the current fiscal year. 19 For each fiscal year beginning on or after July 1, 2028, 20 the maximum levy rate is the levy rate imposed by the county 21 for the current fiscal year unless the total assessed value, 22 excluding new valuation, used to calculate taxes for general 23 county services for the budget year is equal to or exceeds 102 24 percent of the total assessed value used to calculate taxes for 25 general county services for the current fiscal year, and for 26 the budget year beginning July 1, 2028, only, not less than 27 a levy rate per $1,000 of assessed value that results in an 28 amount of actual property tax dollars certified for levy equal 29 to 100.5 percent of the actual property tax dollars certified 30 for levy for the current fiscal year. 31 If the total assessed value, excluding value attributable 32 to new valuation, used to calculate taxes for general county 33 services for the budget year is equal to or exceeds 102 percent 34 of the total assessed value used to calculate taxes for general 35 -97- LSB 5195SV (2) 91 md/jh 97/ 117

S.F. 2472 county services for the current fiscal year, the levy rate 1 imposed shall not exceed a levy rate per $1,000 of assessed 2 value that is equal to 1,000 multiplied by the quotient 3 obtained by dividing the product of the budget adjustment 4 factor, as defined in the bill, unless modified by the general 5 assembly on or before January 31 immediately preceding the 6 applicable fiscal year, and which ranges from 102 percent to 7 105 percent depending upon the amount of annual increase in the 8 consumer price index, multiplied by the current fiscal year’s 9 actual property tax dollars certified for levy by the remainder 10 of the total assessed value used to calculate such taxes for 11 the budget year minus value attributable to new valuation. 12 The bill similarly modifies the maximum levy rate for rural 13 county services for fiscal years beginning on or after July 1, 14 2027. 15 This division takes effect January 1, 2027, and applies to 16 county taxes and budgets for fiscal years beginning on or after 17 July 1, 2027. 18 DIVISION II —— CITY PROPERTY TAXES AND BUDGETS. Code 19 section 384.1 establishes the city general fund levy and limits 20 on the levy rate. The bill modifies the general fund levy 21 rate limitation for the fiscal year beginning July 1, 2027, 22 to be a levy rate not to exceed the greater of: (1) a levy 23 rate per $1,000 of assessed value equal to 1,000 multiplied 24 by the quotient of 102 percent of the current fiscal year’s 25 (immediately preceding fiscal year) actual property tax dollars 26 certified for levy divided by the remainder of the total 27 assessed value used to calculate such taxes for the budget year 28 minus value attributable to new valuation, as defined in the 29 bill; and (2) a levy rate per $1,000 of assessed value that 30 results in an amount of actual property tax dollars certified 31 for levy equal to 100.5 percent of the actual property tax 32 dollars certified for such levy for the current fiscal year. 33 For each fiscal year beginning on or after July 1, 2028, the 34 maximum levy rate is the levy rate imposed by the city for the 35 -98- LSB 5195SV (2) 91 md/jh 98/ 117

S.F. 2472 current fiscal year unless the total assessed value, excluding 1 new valuation, used to calculate taxes for the budget year is 2 equal to or exceeds 102 percent of the total assessed value 3 used to calculate taxes for the current fiscal year, and for 4 the budget year beginning July 1, 2028, only, not less than 5 a levy rate per $1,000 of assessed value that results in an 6 amount of actual property tax dollars certified for levy equal 7 to 100.5 percent of the actual property tax dollars certified 8 for levy for the current fiscal year. 9 If the total assessed value, excluding value attributable 10 to new valuation, used to calculate taxes for the city general 11 fund for the budget year is equal to or exceeds 102 percent 12 of the total assessed value used to calculate taxes for the 13 current fiscal year, the levy rate imposed shall not exceed 14 a levy rate per $1,000 of assessed value that is equal to 15 1,000 multiplied by the quotient obtained by dividing the 16 product of the budget adjustment factor, as defined in the 17 bill, unless modified by the general assembly on or before 18 January 31 immediately preceding the applicable fiscal year, 19 and which ranges from 102 percent to 105 percent depending 20 upon the amount of annual increase in the consumer price 21 index, multiplied by the current fiscal year’s actual property 22 tax dollars certified for levy by the remainder of the total 23 assessed value used to calculate such taxes for the budget year 24 minus value attributable to new valuation. 25 The bill also establishes a methodology to determine a 26 maximum levy rate for a city that is not imposing a general 27 fund levy in the current fiscal year. 28 This division takes effect January 1, 2027, and applies to 29 property taxes and budgets for fiscal years beginning on or 30 after July 1, 2027. 31 DIVISION III —— SCHOOL TAXES AND BUDGETS. As part of 32 the state school foundation program, for school budget 33 years beginning on or after July 1, 2022, Code section 257.1 34 establishes the regular program foundation base to be 88.4 35 -99- LSB 5195SV (2) 91 md/jh 99/ 117

S.F. 2472 percent of the regular program state cost per pupil. Beginning 1 with the budget year beginning July 1, 2027, the bill increases 2 that percentage to 100 percent. 3 Code section 257.3 requires school districts to levy a 4 foundation property tax of $5.40 per $1,000 of assessed value 5 on all taxable property in the school district. The bill 6 reduces the foundation property tax levy rate to $4.48662 per 7 $1,000 of assessed value for budget years beginning on or after 8 July 1, 2027. 9 Code section 257.3 provides an exception to the foundation 10 property tax levy rate of $5.40 for those school districts that 11 have recently been reorganized. Such districts are provided 12 reduced foundation property tax levy rates for three years 13 following the reorganization. The bill adjusts those reduced 14 rates for reorganizations that take effect on or after July 15 1, 2027, to reflect the reduction made in the bill to the 16 foundation property tax levy imposed by school districts that 17 are not subject to a reorganization and eliminates certain 18 supplemental aid related to such reorganized school district 19 rates for budget years beginning on or after July 1, 2027. 20 The bill eliminates certain property tax adjustment aid 21 under Code section 257.15(2) and (3) for fiscal years beginning 22 on or after July 1, 2027. 23 The bill eliminates the $24 million general fund 24 appropriation for adjusted additional property tax levy aid 25 under Code section 257.15(4) for fiscal years beginning on 26 or after July 1, 2027. The bill also eliminates the annual 27 appropriation of the balance of the property tax equity and 28 relief fund under Code section 257.16A for purposes designated 29 under Code section 257.15(4) and requires remaining moneys at 30 the end of a specified fiscal year to be transferred back to 31 the funds from which they were received. 32 The bill eliminates the payment of school district property 33 tax replacement payments for fiscal years beginning on or after 34 July 1, 2027. 35 -100- LSB 5195SV (2) 91 md/jh 100/ 117

S.F. 2472 The bill eliminates the annual appropriation of moneys in 1 the foundation base supplement fund for fiscal years beginning 2 on or after July 1, 2027, and requires the remaining moneys 3 at the end of a specified fiscal year to be transferred for 4 deposit in the secure an advanced vision for education fund. 5 The bill eliminates transfers from the secure an advanced 6 vision for education fund to the property tax equity and relief 7 fund and the foundation base supplement fund for fiscal years 8 beginning on or after July 1, 2027, and instead provides that 9 such amounts shall be credited to the state general fund to be 10 used for increased foundation aid resulting from the increase 11 in the regular program foundation base per pupil to 100 percent 12 of the regular program state cost per pupil. 13 In Code chapters 425A (family farm tax credit) and 426 14 (agricultural land tax credit), the bill replaces references 15 to the school foundation property tax levy rate ($5.40) with 16 citations to the appropriate provision of the Code section 17 establishing the foundation property tax rate. 18 The bill requires each school district with an unexpended 19 fund balance in the district’s management levy fund under 20 Code section 298A.3 at the conclusion of the fiscal year 21 beginning July 1, 2025, that exceeds an amount equal to the 22 total expenditures from the district’s management fund for the 23 fiscal year beginning July 1, 2025, to certify such unexpended 24 fund balance and expenditure amounts, including any reserved 25 or designated amounts in the fund and the purposes therefor, 26 to the school budget review committee by November 15, 2026. 27 The committee is then required to conduct a review of the 28 unexpended fund balances and expenditures of school district 29 management levy funds certified under the bill. By February 30 1, 2027, the committee shall make recommendations to the 31 general assembly for establishing district management levy fund 32 unexpended fund balance limitations for fiscal years beginning 33 on or after July 1, 2028, including recommendations for 34 limitations based on a percentage of the district’s management 35 -101- LSB 5195SV (2) 91 md/jh 101/ 117

S.F. 2472 levy fund expenditures and recommendations for management levy 1 limitations and expenditure requirements for excess funds. 2 The bill reduces by approximately 30 percent the maximum 3 levy rates for the regular and voter-approved physical plant 4 and equipment levy under Code section 298.2 and the school 5 district bond tax under Code section 298.18. The bill provides 6 that the reduced levy rate limitations under Code section 7 298.18(1)(d) do not apply to the payment of general obligation 8 bonds approved for issuance at an election held on or before 9 November 4, 2025, that are sold on or after May 1, 2026, but 10 instead are subject to the limits specified under the prior 11 rate limits. The bill also repeals an obsolete provision 12 relating to levy adjustments authorized to occur before June 13 30, 2007, in Code section 298.18A. 14 The bill also amends Code section 298.4 by providing that for 15 fiscal years beginning on or after July 1, 2028, if a school 16 district’s unexpended fund balance of the district’s management 17 levy fund is equal to or exceeds a specified percentage of the 18 average annual expenditures from the district’s management 19 levy fund for the three consecutive fiscal years immediately 20 preceding the base year, the board of directors may not certify 21 a district management levy for the fiscal year. Additionally, 22 if a school district is not prohibited from certifying a levy 23 under the bill, the maximum amount that the board of directors 24 may certify for levy under the district management levy shall 25 be an amount equal to the remainder of a specified percentage 26 of the average annual expenditures from the district’s 27 management levy fund for the three consecutive fiscal years 28 immediately preceding the base year minus the district’s 29 management levy fund unexpended fund balance for the fiscal 30 year preceding the base year. 31 Except for the section of the division amending Code section 32 257.31, which relates to the school budget review committee, 33 this division of the bill takes effect January 1, 2027, and 34 applies to fiscal years and school budget years beginning on 35 -102- LSB 5195SV (2) 91 md/jh 102/ 117

S.F. 2472 or after July 1, 2027. 1 DIVISION IV —— PROPERTY VALUATIONS AND ASSESSMENT 2 LIMITATIONS. Code section 441.21 provides that the actual 3 value of agricultural property shall be determined on the basis 4 of productivity and net earning capacity and that any formula 5 or method employed to determine productivity and net earning 6 capacity of property shall be adopted in full by rule of the 7 department of revenue (IDR). The bill amends that provision 8 by specifying that for assessment years beginning on or after 9 January 1, 2027, structures on agricultural land constructed on 10 or after January 1, 2027, that are not agricultural dwellings 11 shall not be included in determination of productivity and 12 net earning capacity of agricultural property and shall not 13 be allocated any portion of the total county productivity 14 value so determined. Such agricultural structures shall 15 instead be valued according to the structure’s replacement 16 cost less depreciation and obsolescence and the structure’s 17 assessed value subject to taxation prior to application of 18 any assessment limitation shall be equal to the product of 19 the structure’s value multiplied by the agricultural factor, 20 as determined in 701 IAC 102.3(2) or succeeding rule of the 21 department. The bill also provides that such structures shall 22 be treated similarly to agricultural structures constructed 23 before January 1, 2027, when applying any IDR equalization 24 order. 25 The bill modifies the list of examples of abnormal property 26 transactions that are to be excluded from consideration or 27 adjusted to eliminate distortions of market value when valuing 28 property to include built-to-suit construction, sale-leaseback 29 transactions, leased fee sales, and instead of sales to 30 immediate family, sales between related parties. 31 Code section 441.21(4) establishes the calculation for 32 assessment limitations (rollback) for residential property and 33 agricultural property. The bill strikes the calculation of 34 the residential property assessment limitation for assessment 35 -103- LSB 5195SV (2) 91 md/jh 103/ 117

S.F. 2472 years beginning on or after January 1, 2026, and strikes 1 the provision within the agricultural property assessment 2 limitation calculation that limits growth of residential or 3 agricultural property to the growth in the other classification 4 (ag-residential tie). The bill provides that residential 5 property is assessed at 72.5 percent of the property’s actual 6 value for assessment years beginning January 1, 2026, and 7 January 1, 2027. The bill then increases the percentage of 8 actual value at which residential property is assessed by 2.75 9 percent each assessment year until the percentage reaches 100 10 percent for assessment years beginning on or after January 1, 11 2037. By operation of law and through changes in the bill, 12 all other classifications of property, except for agricultural 13 property, residential property, and multiresidential property, 14 are assessed at 100 percent of actual value for assessment 15 years beginning on or after January 1, 2026. 16 The bill modifies provisions governing the calculation 17 of payments made to local governments under Code section 18 441.21(5)(e) that are made to replace property taxes due to the 19 application of the residential property assessment limitation 20 to certain portions of commercial and industrial property 21 valuations and eliminates the appropriation for such payments 22 for fiscal years beginning on or after July 1, 2027, due to 23 elimination of the assessment limitations. 24 The bill also reestablishes a multiresidential property 25 classification for assessment years beginning on or after 26 January 1, 2027, that includes types of property that were 27 classified as multiresidential property for assessment years 28 beginning before January 1, 2022. Such property is included 29 within the residential property classification under current 30 law. Under the bill, for purposes of equalization under Code 31 sections 441.47 through 441.49, multiresidential property shall 32 be considered residential property. The bill provides that 33 multiresidential property is assessed at 72.5 percent of actual 34 value for the assessment year beginning January 1, 2027. The 35 -104- LSB 5195SV (2) 91 md/jh 104/ 117

S.F. 2472 bill then increases the percentage of actual value at which 1 multiresidential property is assessed by 2.75 percent each 2 assessment year until the percentage reaches 100 percent for 3 assessment years beginning on or after January 1, 2037. 4 Except for provisions relating to the reestablishment of the 5 multiresidential property classification, this division of the 6 bill applies retroactively to assessment years beginning on or 7 after January 1, 2026. 8 DIVISION V —— DISABLED VETERAN AND HOMESTEAD CREDITS AND 9 EXEMPTIONS. Starting with the assessment year beginning 10 January 1, 2026, the bill replaces the homestead property 11 tax credit, other than the portion of the credit provided 12 to certain disabled veterans, with a homestead property tax 13 exemption. For the assessment year beginning January 1, 2026, 14 the exemption amount is 25 percent of taxable value, not to 15 exceed $175,000 in taxable value. The exemption percentage 16 increases by 2.5 percent and the maximum exemption amount 17 increases by $17,500 each assessment year until the percentage 18 is 50 percent for assessment years beginning on or after 19 January 1, 2036, and the maximum exemption amount is $350,000. 20 However, for those assessment years beginning on or after 21 January 1, 2036, such exemptions amounts for owners 60 years 22 of age and older are as follows: (1) for an owner that has 23 attained the age of 60 but has not attained the age of 70, 24 60 percent of taxable value not to exceed an exemption of 25 $350,000; (2) for an owner that has attained the age of 70 but 26 has not attained the age of 80, 70 percent of taxable value 27 not to exceed an exemption of $350,000; (3) for an owner that 28 has attained the age of 80 but has not attained the age of 29 90, 80 percent of taxable value not to exceed an exemption of 30 $350,000; (4) for an owner that has attained the age of 90 but 31 has not attained the age of 100, 90 percent of taxable value 32 not to exceed an exemption of $350,000; and (5) for an owner 33 that has attained the age of 100, 100 percent of taxable value 34 not to exceed an exemption of $350,000. 35 -105- LSB 5195SV (2) 91 md/jh 105/ 117

S.F. 2472 The bill specifies that the elderly homestead exemption of 1 $6,500 in taxable value under current law applies in addition 2 to the homestead exemption established in the bill and the 3 unencumbered homestead exemption established in the bill. 4 The bill establishes a homestead exemption for homesteads 5 that are unencumbered homesteads. The bill defines 6 “unencumbered homestead” to be a homestead as defined in Code 7 section 425.11, but excluding appurtenances and that portion 8 of the land upon which the dwelling house is situated that 9 exceeds one-half acre, owned by an individual that has attained 10 the age of 65 years by January 1 of the applicable assessment 11 year and for which no mortgage or other indebtedness or account 12 secured by an interest in the homestead exists on January 1 of 13 the assessment year. For the assessment year beginning January 14 1, 2026, the unencumbered homestead exemption is 25 percent of 15 the taxable value following application of the other homestead 16 exemption established in the bill, but before the homestead 17 exemption for persons 65 years of age, if applicable. The 18 exemption percentage increases by 25 percent each assessment 19 year until the percentage is 100 percent for assessment years 20 beginning on or after January 1, 2029. The unencumbered 21 homestead exemption, however, does not apply to voter-approved 22 levies, as defined in the bill, or property tax levies, or 23 portions thereof, that are for the payment of voter-approved 24 bonds or other voter-approved indebtedness. The provisions 25 of Code section 25B.7 relating to funding of new property tax 26 credits and exemptions are made inapplicable to the exemptions 27 in the bill. 28 The bill moves the disabled veteran homestead credit from 29 Code section 425.15 to Code section 425.1, and makes changes 30 to the scope of the disabled veteran homestead credit for new 31 applicants. Currently, a disabled veteran with a 100 percent 32 permanent and total disability rating receives a homestead 33 credit on the entire amount of tax levied on the homestead. 34 The bill specifies that a separate application form is required 35 -106- LSB 5195SV (2) 91 md/jh 106/ 117

S.F. 2472 to claim the disabled veteran homestead credit. The bill 1 does not change the homestead credit for an eligible disabled 2 veteran who makes an application for the homestead credit 3 before July 1, 2026. For a disabled veteran who makes an 4 application for the homestead credit on or after July 1, 2026, 5 the bill changes the definition of “homestead” to exclude 6 appurtenances and limits the size of the homestead credit to 7 property on one-half acre. 8 The state continues to reimburse local governments for the 9 homestead credit, which for assessment years beginning on or 10 after January 1, 2026, includes only the disabled veterans 11 homestead credit, but does not reimburse local governments for 12 the homestead exemption under current law and in the bill. 13 The bill provides that homestead owners who have filed for 14 or who are receiving homestead credits or exemptions before 15 the effective date of this division of the bill shall continue 16 to receive such credits and exemptions for which the owner is 17 eligible for assessment years beginning on or after January 18 1, 2026, without refiling, and, if the owner is eligible, 19 shall receive the exemption under Code section 425.1A(1A), as 20 enacted in this division of the bill, without filing for such 21 exemption. 22 This division of the bill applies retroactively to 23 assessment years beginning on or after January 1, 2026. 24 DIVISION VI —— MILITARY SERVICE PROPERTY TAX EXEMPTION. 25 Under current law, a veteran receives a property tax exemption 26 of $4,000 in taxable value on property owned by the veteran. 27 The bill increases the veterans property tax exemption from 28 $4,000 to the following exemption amounts: for the assessment 29 year beginning January 1, 2026, $5,000; for the assessment year 30 beginning January 1, 2027, $6,000; and for assessment years 31 beginning on or after January 1, 2028, $7,000. 32 This division applies retroactively to assessment years 33 beginning on or after January 1, 2026. 34 DIVISION VII —— HOSPITAL AND EMERGENCY MEDICAL SERVICES 35 -107- LSB 5195SV (2) 91 md/jh 107/ 117

S.F. 2472 PROPERTY TAX LEVIES. The bill provides that for fiscal years 1 beginning on or after July 1, 2027, any property tax levy 2 imposed for a county hospital under Code chapter 347 that is 3 limited by law to a specific property tax levy rate per $1,000 4 of assessed value shall not exceed a levy rate per $1,000 5 of assessed value that is equal to 1,000 multiplied by the 6 quotient obtained by dividing 105 percent of the current fiscal 7 year’s actual property tax dollars certified for such levy by 8 the remainder of the total assessed value used to calculate 9 such taxes for the budget year minus value attributable to new 10 valuation. The bill defines “budget year”, “current fiscal 11 year”, and “new valuation” to mean the same as defined in Code 12 section 331.423, as amended in the bill. 13 The bill establishes similar limitations for levies imposed 14 under Code chapters 347A (county hospitals payable from 15 revenue), 357F (emergency medical services districts), 357G 16 (city emergency medical services districts), and 422D (optional 17 taxes for emergency medical services) that are limited by law 18 to a specific property tax levy rate per $1,000 of assessed 19 value. 20 DIVISION VIII —— PROPERTY TAX LEVY RATES. The bill 21 establishes a reduction for rate-limited property tax levies. 22 The bill defines “rate-limited property tax levy” to be any ad 23 valorem property tax levy limited by law to a specific property 24 tax levy rate per $1,000 of assessed value used to calculate 25 taxes, but does not include the school district foundation 26 levy under Code section 257.3, the county general services 27 levy under Code section 331.423(1), the county rural services 28 levy under Code section 331.423(2), the city general fund levy 29 under Code section 384.1(3), the physical plant and equipment 30 levies under Code section 298.2, the school district bond tax 31 under Code section 298.18, any levy under Code chapter 28M, 32 a levy under Code section 384.12(1)(a) levied for operation 33 and maintenance of a municipal transit system, a levy under 34 Code section 384.12(1)(b) levied for operation and maintenance 35 -108- LSB 5195SV (2) 91 md/jh 108/ 117

S.F. 2472 of a regional transit district, a levy for the office of 1 the assessor under Code section 441.16, a levy for a county 2 agricultural extension under section 176A.10, any levy under 3 Code chapter 386, any levy under Code chapter 347 or 347A, and 4 any levy under Code chapter 357F, 357G, or 422D. In addition, 5 “rate-limited property tax levy” does not include levy rates 6 used in the calculations under Code section 312.2(5)(a). 7 For the fiscal year beginning July 1, 2027, each 8 rate-limited property tax levy may only be imposed if the 9 governmental entity imposed such levy for the fiscal year 10 beginning July 1, 2026, and shall, by operation of the bill, 11 be limited to a levy rate that is equal to 1,000 multiplied 12 by the quotient of 102 percent of the current fiscal year’s 13 actual property tax dollars certified for such levy divided 14 by the total assessed value used to calculate such taxes for 15 the budget year, but not less than a levy rate per $1,000 of 16 assessed value that results in an amount of actual property tax 17 dollars certified for levy for such levy equal to 100.5 percent 18 of the actual property tax dollars certified for such levy for 19 the fiscal year beginning July 1, 2026. 20 For the fiscal year beginning July 1, 2028, and each fiscal 21 year thereafter, rate-limited property tax levies may be 22 imposed by any governmental entity otherwise authorized by law, 23 regardless of whether the governmental entity imposed the levy 24 for the fiscal year beginning July 1, 2026, at rates not to 25 exceed those established by the general assembly by statute 26 following receipt and consideration of the report submitted by 27 the legislative interim committee requested to be established 28 by the legislative council in this division of the bill. 29 The bill also provides that, on or after July 1, 2026, a 30 city or county shall not issue bonds or other indebtedness, 31 as defined in the bill, payable from an ad valorem property 32 tax levy for the purpose of funding the general operations of 33 the city or general operations of the county, as applicable, 34 or otherwise use proceeds from the sale of bonds or issuance 35 -109- LSB 5195SV (2) 91 md/jh 109/ 117

S.F. 2472 of other indebtedness to fund general operations. The bill 1 defines “general operations” to mean services or activities 2 generally funded from the governmental entity’s general fund, 3 which are necessary for the operation of the governmental 4 entity, including salaries and benefits, or which are for the 5 health and welfare of the governmental entity’s citizens or 6 primarily intended to benefit all residents of the governmental 7 entity, but excluding services financed by statutory funds 8 other than a debt service fund. 9 The department of management is required to adopt rules 10 under Code chapter 17A to implement the new Code section 11 governing funding of general operations. 12 The bill reduces levy rates used to make certain 13 calculations related to the secondary road fund allocations 14 under Code section 312.2. 15 The bill requests the legislative council to establish a 16 legislative study committee during the 2026 legislative interim 17 and the 2027 legislative interim to examine appropriate rates 18 of property taxation imposed by governmental entities following 19 enactment of the bill and determine an alternative methodology 20 and period of time to increase the percentage of actual value 21 at which residential and multiresidential property are subject 22 to tax from 75 percent to 100 percent. The study committee 23 shall consist of six voting members of the general assembly. 24 Two members shall be appointed by the majority leader of the 25 senate, one member appointed by the minority member of the 26 senate, two members appointed by the speaker of the house of 27 representatives, and one member appointed by the minority 28 leader of the house of representatives. The study committee 29 is required to make recommendations to the general assembly by 30 January 15, 2028. 31 DIVISION IX —— LOCAL SALES AND SERVICES TAX. Code chapter 32 423B authorizes a local sales and services tax to be imposed at 33 a rate of 1 percent. The bill authorizes the local sales and 34 services tax to be imposed at either 1 percent or 1.5 percent. 35 -110- LSB 5195SV (2) 91 md/jh 110/ 117

S.F. 2472 The bill also provides that for amendments to local sales and 1 services tax revenue purpose statements approved at election 2 on or after the effective date of this division of the bill, 3 if the existing revenue purpose statement expressly provides 4 for an amount or percentage of revenue for uses related to 5 road construction, repair, or maintenance, the amended revenue 6 purpose statement shall require amounts or percentages of 7 revenue equal to or greater than those in the existing revenue 8 purpose statement. 9 This division of the bill takes effect upon enactment. 10 DIVISION X —— ADJUSTMENTS TO MOTOR VEHICLE REGISTRATION FEES 11 AND FUEL TAXES. Under current law, in addition to the required 12 annual registration fee, the owner of a battery electric 13 motor vehicle or a plug-in hybrid electric motor vehicle, 14 including a motorcycle, must pay an additional electric motor 15 vehicle registration fee each year. The additional fee for 16 a battery electric motor vehicle is $130, the additional fee 17 for a plug-in hybrid electric motor vehicle is $65, and the 18 additional fee for an electric motorcycle is $9. 19 The bill requires the department of transportation (DOT) 20 to adjust these fees beginning July 1 each year to account 21 for increases in the consumer price index (CPI) for all urban 22 consumers. The DOT must calculate the adjusted fees using a 23 formula based on the change in CPI. The fees must increase 24 with a positive change in CPI, up to 3 percent, rounded to the 25 nearest dollar. However, if the general assembly nullifies the 26 adjustment by joint resolution signed by the governor on or 27 before April 30, or if the CPI is zero or negative for the prior 28 year ending December 31, the applicable adjusted fees in effect 29 at the time of the calculation are not adjusted. Similarly, 30 if a fee increased for three consecutive years prior to the 31 calculation, the fee must not be adjusted in the fourth year. 32 If, when rounded to the nearest dollar, the adjusted annual 33 electric motorcycle registration fee does not result in an 34 increase, the DOT is required to use the unrounded adjusted fee 35 -111- LSB 5195SV (2) 91 md/jh 111/ 117

S.F. 2472 as the fee in effect when the DOT calculates the next adjusted 1 fee. 2 Under current law, the excise tax on each gallon of motor 3 fuel, other than ethanol blended gasoline classified as E-15 4 or higher, is 30 cents. The excise tax on each gallon of 5 special fuel for diesel engines of motor vehicles, other than 6 biodiesel blended fuel classified as B-20 or higher, is 32.5 7 cents. The excise taxes on each gallon of ethanol blended 8 gasoline classified as E-15 or higher and biodiesel blended 9 fuel classified as B-20 or higher are based on the distribution 10 percentage of those fuels compared to the distribution of other 11 gasoline and special fuels, and range from 24 cents to 30 12 cents, and 29.5 cents to 32.5 cents, respectively. The excise 13 tax is 8 cents per gallon on the use of aviation gasoline, 5 14 cents per gallon on special fuel for aircraft, 30 cents per 15 gallon on liquefied petroleum gas used as a special fuel, 31 16 cents per gallon on compressed natural gas used as a special 17 fuel, 32.5 cents per gallon on liquefied natural gas used as 18 a special fuel, and 65 cents per gallon on hydrogen used as 19 a special fuel. Other than electricity used at a person’s 20 residence, the excise tax is 2.6 cents on each kilowatt hour 21 of electric fuel delivered or placed into the battery or other 22 energy storage device of an electric motor vehicle. The bill 23 requires IDR to adjust these excise taxes to account for 24 increases in the CPI each year. 25 The bill requires IDR to calculate the adjusted excise taxes 26 using a formula based on the change in CPI. The adjusted 27 excise taxes must increase with a positive change in CPI, up 28 to 3 percent, rounded to the nearest one-tenth of 1 cent. 29 However, if the general assembly nullifies the adjustment by 30 joint resolution signed by the governor on or before April 30, 31 or if the CPI is zero or negative for the prior year ending 32 December 31, the applicable excise taxes in effect at the 33 time of the calculation are not adjusted. Similarly, if an 34 excise tax increased for three consecutive years prior to the 35 -112- LSB 5195SV (2) 91 md/jh 112/ 117

S.F. 2472 calculation, the excise tax must not be adjusted in the fourth 1 year. 2 By January 15 each year, DOT and IDR must calculate and 3 report the adjusted fees and excise taxes, respectively, to 4 the general assembly and the director of the department of 5 management. The reports may be submitted jointly. 6 Pursuant to Code section 452A.59, IDR is empowered to 7 adopt administrative rules relating to the administration and 8 enforcement of Code chapter 452A, including as amended by the 9 bill, as IDR deems necessary. 10 Article VII, section 8, of the Constitution of the State 11 of Iowa requires all motor vehicle registration fees and 12 excise taxes on motor vehicle fuel, other than the cost of 13 administration, to be used exclusively for the construction, 14 maintenance, and supervision of the public highways exclusively 15 within Iowa, or for the payment of bonds issued for such 16 purposes. Code section 312.2 provides the formula for 17 distribution of the road use tax fund. 18 This division of the bill takes effect January 1, 2027. 19 DIVISION XI —— OFFICE OF THE ASSESSOR —— BUDGET AND LEVY. 20 Code section 441.16(5) authorizes a $0.675 per $1,000 of 21 assessed value property tax levy for the maintenance of the 22 office of the assessor and other assessment procedure. The 23 bill provides that for fiscal years beginning on or after July 24 1, 2027, expenses of the office of the assessor, the examining 25 board, and the board of review related to duties or expenses 26 authorized to be paid using funds levied under Code sections 27 96.31, 97B.9, and 97C.10 shall not be paid from the levy under 28 Code section 441.16(5). The bill also provides that the levy 29 under Code section 441.16(5) for the fiscal year beginning 30 July 1, 2027, shall not exceed a rate per $1,000 of assessed 31 value that is equal to 1,000 multiplied by the quotient of 32 102 percent of the current fiscal year’s actual property tax 33 dollars certified for such levy, excluding amounts attributable 34 to specified types of expenses under Code sections 97B.9 and 35 -113- LSB 5195SV (2) 91 md/jh 113/ 117

S.F. 2472 97C.10 and insurance expenses, tort claims, and judgments, 1 divided by the total assessed value used to calculate such 2 taxes for the budget year. The bill then provides that for 3 each fiscal year beginning on or after July 1, 2028, any 4 tax for the maintenance of the office of assessor and other 5 assessment procedure shall be levied only upon the property in 6 the area assessed by the assessor, and such tax levy shall not 7 exceed a rate per $1,000 of assessed value in the assessing 8 area that is equal to 1,000 multiplied by the quotient of 9 102 percent of the current fiscal year’s actual property tax 10 dollars certified for such levy divided by the total assessed 11 value used to calculate such taxes for the budget year. 12 This division takes effect January 1, 2027, and applies to 13 property taxes due and payable in fiscal years beginning on or 14 after July 1, 2027. 15 DIVISION XII —— REGIONAL TRANSIT DISTRICT LEVY. Code 16 section 28M.5 authorizes a regional transit district to levy a 17 property tax not to exceed $0.95 per $1,000 of assessed value. 18 The bill lowers that levy to $0.80 per $1,000 of assessed 19 value and makes corresponding changes to other provisions of 20 law governing the levy rates for municipal transit systems and 21 regional transit districts. In addition, the bill establishes 22 an annual limitation on the total amount of property taxes 23 that a regional transit district may receive. For each fiscal 24 year beginning on or after July 1, 2027, the total amount 25 of property taxes for support of a regional transit district 26 shall not exceed 105 percent of the total amount of property 27 taxes for support of the regional transit district for the 28 immediately preceding fiscal year. 29 The bill also lowers the $0.95 city levy for the operation 30 and maintenance of a municipal transit system to $0.80 and 31 establishes an annual limitation on the total amount of 32 property taxes levied by a city for such purpose to be an 33 amount not to exceed 105 percent of the amount levied for the 34 immediately preceding fiscal year. 35 -114- LSB 5195SV (2) 91 md/jh 114/ 117

S.F. 2472 This division takes effect January 1, 2027, and applies to 1 property taxes due and payable in fiscal years beginning on or 2 after July 1, 2027. 3 DIVISION XIII —— UTILITY REPLACEMENT TAX TASK FORCE. Code 4 section 437A.15(7) establishes a utility replacement tax task 5 force. The bill modifies the duties of the task force to study 6 the accuracy of the taxes imposed under Code chapters 437A 7 and 437B, ways to modernize the administration of such taxes, 8 methods of simplifying administration of the replacement taxes, 9 elimination of property taxes imposed under Code chapter 437A 10 or 437B, simplification of thresholds for replacement tax rate 11 adjustments while retaining tax stability, and the effects of 12 such taxes on local taxing authorities, local taxing districts, 13 consumers, and taxpayers through December 31, 2026, including 14 ways to maintain continuity for local taxing districts and 15 consumers and ways to provide a competitive and equitable 16 tax environment for taxpayers. If the task force recommends 17 modifications to the replacement taxes, the department 18 of management shall transmit those recommendations to the 19 general assembly. This division of the bill takes effect upon 20 enactment. 21 DIVISION XIV —— LOCAL GOVERNMENT BUDGET STATEMENTS. Code 22 section 24.2A requires the county auditor to mail statements 23 containing certain county, city, and school district budget and 24 property tax information to each property owner or taxpayer. 25 For budgets for fiscal years beginning on or after July 1, 26 2027, the bill authorizes those statements to be to be posted 27 on the political subdivision’s internet site by March 15 in 28 lieu of mailing individual statements. Additionally, if the 29 political subdivision maintains a social media account on 30 one or more social media applications, the statement or an 31 electronic link to the statement shall be posted on each such 32 account on a date no later than March 15. 33 DIVISION XV —— REAL ESTATE TRANSFER TAX FORMS. The bill 34 amends Code section 428A.7 governing real estate transfer tax 35 -115- LSB 5195SV (2) 91 md/jh 115/ 117

S.F. 2472 forms for the declaration of value prescribed by the department 1 of revenue by specifying examples of the types of special facts 2 and circumstances that may distort market value. 3 DIVISION XVI —— DIVISION OF REVENUE —— DATA CENTERS. The 4 bill excludes the school district foundation property tax 5 imposed under Code section 257.3 from the division of revenue 6 under Code section 403.19 (tax increment financing) for taxes 7 levied against a qualified data center. The bill defines 8 “qualified data center” to be a data center, as defined in 9 Code section 423.3(95), for which site preparation activities, 10 as defined in Code section 423.3(95), began on or after the 11 effective date of the division of the bill, which is effective 12 upon enactment. The bill prohibits such foundation property 13 tax from being divided and paid into the municipality’s special 14 fund for the payment of urban renewal indebtedness but instead 15 requires the tax to be levied, collected, and paid to the 16 school district in the same manner as all other property taxes. 17 The exclusion in the bill applies to property taxes due and 18 payable in fiscal years beginning on or after July 1, 2027. 19 DIVISION XVII —— MOBILE HOME, MANUFACTURED HOME, AND MODULAR 20 HOME TAXES. Code chapter 435 imposes a square footage tax on 21 mobile homes and manufactured homes placed in a mobile home 22 park or manufactured home community. The bill strikes the 23 portions of Code chapter 435 imposing the square footage tax 24 and provides instead that such homes are exempt from property 25 tax. However, the bill does not modify the provisions of law 26 governing the taxation of mobile homes and manufactured homes 27 placed outside of manufactured home communities and mobile 28 home parks, which are assessed and taxed in the same manner 29 as other real property. Additionally, the bill provides that 30 modular homes placed in a manufactured home community or mobile 31 home park in existence on or before January 1, 1998, which are 32 subject to the square footage tax under current law, are exempt 33 from property tax. The bill also makes corresponding changes 34 to several other provisions of law that relate to Code chapter 35 -116- LSB 5195SV (2) 91 md/jh 116/ 117

S.F. 2472 435. This division of the bill does not affect the operation 1 of, or prohibit the application of, prior provisions of law or 2 rules adopted to administer the manufactured or mobile home 3 tax assessed under Code chapter 435 for taxes due and payable 4 before July 1, 2026. 5 DIVISION XVIII —— ELDERLY AND DISABLED PROPERTY TAX 6 CREDIT AND RENT REIMBURSEMENT. One category of claimant 7 of the additional homestead credit for certain elderly and 8 disabled individuals under Code chapter 425, subchapter II, 9 is an individual who has attained the age of 70 years with 10 a household income of less than 250 percent of the federal 11 poverty level. Such claimant’s credit is calculated, in part, 12 based on the growth in the amount of taxes owed by the claimant 13 (property tax freeze). The bill eliminates that provision 14 for individuals 70 years of age and older and accordingly 15 allows such credit amount to be calculated under the provision 16 applicable to individuals age 65 and older based on certain 17 income thresholds indexed to inflation. 18 Except for the property tax freeze calculation under Code 19 section 425.23(1)(c) that was repealed in the bill, current law 20 limits the maximum amount of the additional homestead property 21 tax credit or reimbursement for rent constituting property 22 taxes paid to $1,000. The bill increases that maximum amount 23 to $1,500. 24 This division of the bill takes effect January 1, 2030, and 25 includes applicability provisions. 26 -117- LSB 5195SV (2) 91 md/jh 117/ 117