Read the full stored bill text
House
File
2745
-
Introduced
HOUSE
FILE
2745
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
596)
A
BILL
FOR
An
Act
relating
to
state
and
local
government
taxes,
budgets,
1
and
authority,
by
modifying
provisions
relating
to
the
2
assessment
and
taxation
of
property,
funding
from
the
secure
3
an
advanced
vision
for
education
fund,
urban
renewal
areas,
4
establishing
a
program
for
certain
first-time
homebuyers,
5
establishing
a
local
government
efficiency
grant
fund,
6
making
appropriations,
and
including
effective
date,
7
applicability,
and
retroactive
applicability
provisions.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
TLSB
6158HV
(4)
91
md/jh
H.F.
2745
DIVISION
I
1
PROPERTY
TAX
REVENUE
LIMITATIONS
——
BOND
REVENUE
USE
2
LIMITATIONS
3
Section
1.
Section
11.11,
Code
2026,
is
amended
to
read
as
4
follows:
5
11.11
Scope
of
audits.
6
The
written
report
of
the
audit
of
a
governmental
7
subdivision
shall
include
the
auditor’s
opinion
as
to
whether
a
8
governmental
subdivision’s
financial
statements
are
presented
9
fairly
in
all
material
respects
in
conformity
with
generally
10
accepted
accounting
principles
or
with
an
other
another
11
comprehensive
basis
of
accounting.
As
a
part
of
conducting
an
12
audit
of
a
governmental
subdivision,
an
evaluation
of
internal
13
control
and
tests
for
compliance
with
laws
and
regulations
14
shall
be
performed.
As
part
of
conducting
an
audit
of
a
15
governmental
subdivision,
an
examination
of
the
governmental
16
subdivision’s
compliance
with
the
reporting
requirements
of
17
section
331.403,
subsection
3
,
or
section
384.22,
subsection
2
,
18
if
applicable,
shall
be
performed.
As
part
of
conducting
an
19
audit
of
a
governmental
subdivision
for
fiscal
years
beginning
20
on
or
after
July
1,
2027,
an
examination
of
the
governmental
21
subdivision’s
compliance
with
section
24.35
shall
be
performed,
22
including
verification
of
the
circumstances
resulting
in
actual
23
reserve
funds
exceeding
the
specified
limits.
24
Sec.
2.
Section
24.34,
Code
2026,
is
amended
to
read
as
25
follows:
26
24.34
Unliquidated
obligations.
27
A
city,
county,
or
other
political
subdivision
governmental
28
entity,
as
defined
in
section
24.35,
may
establish
an
29
encumbrance
system
for
any
obligation
not
liquidated
at
the
30
close
of
the
fiscal
year
in
which
the
obligation
has
been
31
encumbered
assigned,
committed,
restricted,
or
specified
as
32
nonspendable
.
The
encumbered
obligations
may
be
retained
upon
33
the
books
of
the
city,
county,
or
other
political
subdivision
34
until
liquidated,
all
in
accordance
with
generally
accepted
35
-1-
LSB
6158HV
(4)
91
md/jh
1/
57
H.F.
2745
governmental
accounting
practices
principles,
as
established
by
1
the
governmental
accounting
standards
board
.
2
Sec.
3.
NEW
SECTION
.
24.35
General
fund
reserves
——
3
limitations.
4
1.
For
purposes
of
this
section:
5
a.
“Budget
year”
is
the
fiscal
year
beginning
during
the
6
calendar
year
in
which
a
budget
is
certified.
7
b.
“Current
fiscal
year”
is
the
fiscal
year
ending
during
8
the
calendar
year
in
which
a
budget
for
the
budget
year
is
9
certified.
10
c.
“General
fund”
means
a
governmental
entity’s
fund
11
designated
as
such
by
law
or
the
governmental
entity’s
fund
12
from
which
primary
general
operations
of
the
governmental
13
entity
are
funded.
14
d.
“Governmental
entity”
means
any
unit
of
government
15
or
other
public
body
or
public
corporation,
including
any
16
intergovernmental
entity,
that
has
the
power
to
impose
or
17
certify
a
property
tax
levy.
“Governmental
entity”
does
not
18
include
a
school
district.
19
e.
“Unassigned”
means
funds
that
are
not
restricted,
20
committed,
assigned,
or
nonspendable
within
the
meaning
of
21
generally
accepted
accounting
principles,
as
established
by
the
22
governmental
accounting
standards
board.
23
2.
a.
For
budgets
certified
for
budget
years
beginning
24
on
or
after
July
1,
2027,
proposed
unassigned
reserve
funds
25
identified
within
a
governmental
entity’s
general
fund
shall
26
not
exceed
an
amount
equal
to
thirty-five
percent
of
the
27
budgeted
expenditures
from
the
governmental
entity’s
general
28
fund
for
the
current
fiscal
year
prior
to
budgeted
transfers
29
from
such
general
fund.
30
b.
If
the
governmental
entity’s
budget
does
not
comply
with
31
the
requirements
of
paragraph
“a”
,
the
department
of
management
32
shall
not
certify
the
governmental
entity’s
taxes
back
to
the
33
county
auditor
under
section
24.17
and
the
governmental
entity
34
shall
remedy
the
violation
and
recertify
the
budget.
35
-2-
LSB
6158HV
(4)
91
md/jh
2/
57
H.F.
2745
3.
To
ensure
uniformity,
accuracy,
and
efficiency
in
the
1
certification
of
governmental
entity
budgets
according
to
the
2
requirements
of
this
section,
the
department
of
management
3
shall
prescribe
the
procedures
to
be
used
and
instruct
the
4
appropriate
officials
of
the
various
governmental
entities
on
5
implementation
of
the
procedures.
6
Sec.
4.
Section
24.48,
Code
2026,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
6.
The
authority
to
suspend
property
tax
9
levy
limitations
under
this
section
shall
not
apply
to
the
10
limitations
of
section
444.25.
11
Sec.
5.
Section
176A.8,
subsection
13,
Code
2026,
is
amended
12
by
striking
the
subsection.
13
Sec.
6.
NEW
SECTION
.
444.25
Maximum
property
tax
levy
14
dollars.
15
1.
For
purposes
of
this
section,
unless
the
context
16
otherwise
requires:
17
a.
“Budget
year”
is
the
fiscal
year
beginning
during
the
18
calendar
year
in
which
a
budget
is
certified.
19
b.
“Current
fiscal
year”
is
the
fiscal
year
ending
during
20
the
calendar
year
in
which
a
budget
for
the
budget
year
is
21
certified.
22
c.
“Governmental
entity”
means
any
unit
of
government
23
or
other
public
body
or
public
corporation,
including
any
24
intergovernmental
entity
or
special
purpose
district,
that
25
has
the
power
to
impose
or
certify
a
property
tax
levy.
26
“Governmental
entity”
does
not
include
a
school
district.
27
d.
“New
valuation”
means
the
increase
from
the
current
28
fiscal
year
to
the
budget
year
in
taxable
valuation,
as
shown
29
on
the
assessment
roll
due
to
the
following,
the
amount
of
each
30
as
reported
under
section
331.510
by
the
county
auditor
to
the
31
department
of
management:
32
(1)
New
construction.
33
(2)
Additions
or
improvements
to
existing
structures
that
34
are
not
normal
and
necessary
repairs
under
section
441.21,
35
-3-
LSB
6158HV
(4)
91
md/jh
3/
57
H.F.
2745
subsection
8.
1
(3)
Net
boundary
adjustments,
including
annexation,
2
severance,
incorporation,
consolidation,
or
discontinuance
as
3
those
terms
are
defined
in
section
368.1.
4
(4)
Valuation
exempt
from
property
tax
for
the
current
5
fiscal
year
as
the
result
of
prior
new
construction,
additions,
6
or
improvements
under
section
15.332,
Code
2025,
section
7
15.500,
chapter
404,
or
chapter
427B,
subchapter
I,
but
which
8
is
not
exempt
from
property
tax
in
the
budget
year.
9
e.
“Property
tax
levy”
means
each
ad
valorem
property
tax
10
authorized
by
law
to
be
imposed
by
a
governmental
entity,
but
11
excluding
any
levy
the
revenue
from
which
is
specified
by
law
12
for
debt
service
or
required
to
be
used
exclusively
for
the
13
repayment
of
bonds
or
other
indebtedness.
14
2.
a.
For
the
budget
year
beginning
July
1,
2027,
and
15
each
budget
year
thereafter,
the
maximum
aggregate
amount
of
16
property
tax
dollars
that
may
be
certified
for
levy
among
all
17
property
tax
levies
imposed
by
a
governmental
entity
against
18
property
that
is
not
new
valuation
shall
not
exceed
an
amount
19
equal
to
the
sum
of
one
hundred
two
percent
of
the
aggregate
20
amount
of
property
tax
dollars
certified
for
levy
by
the
21
governmental
entity
among
all
property
tax
levies
imposed
by
22
the
governmental
entity
for
the
current
fiscal
year.
23
b.
If
the
budget
year
includes
a
voter-approved
property
tax
24
levy
that
was
not
approved
for
imposition
in
the
current
fiscal
25
year,
the
maximum
aggregate
amount
of
property
tax
dollars
for
26
the
governmental
entity
under
paragraph
“a”
for
the
budget
27
year
shall
be
increased
by
the
amount
of
the
voter-approved
28
property
tax
levy
approved
at
election
for
the
budget
year.
If
29
the
current
fiscal
year
includes
a
voter-approved
property
tax
30
levy
that
is
not
approved
for
imposition
in
the
budget
year,
31
the
maximum
aggregate
amount
of
property
tax
dollars
for
the
32
governmental
entity
under
paragraph
“a”
for
the
budget
year
33
shall
be
reduced
by
the
amount
of
the
voter-approved
property
34
tax
levy
for
the
current
fiscal
year.
35
-4-
LSB
6158HV
(4)
91
md/jh
4/
57
H.F.
2745
c.
The
amount
of
property
tax
dollars
calculated
under
this
1
section
includes
those
amounts
budgeted
by
the
governmental
2
entity
as
replacement
taxes
under
chapter
437A
or
437B,
if
3
applicable.
4
3.
For
purposes
of
this
section,
if
the
governmental
5
entity’s
taxes
for
a
property
tax
levy
were
not
certified
6
back
by
the
department
of
management
under
section
24.17
for
7
the
current
fiscal
year
due
to
an
act
or
omission
of
the
8
governmental
entity,
the
current
fiscal
year’s
property
tax
9
dollars
certified
for
levy
for
that
property
tax
levy
shall
10
be
equal
to
the
amount
certified
for
levy
for
the
fiscal
year
11
immediately
preceding
the
current
fiscal
year.
12
4.
If
a
governmental
entity
certifies
a
budget
that
violates
13
this
section,
the
department
of
management
shall
reduce
each
of
14
the
applicable
governmental
entity’s
property
tax
levies
on
a
15
pro
rata
basis
so
that
the
governmental
entity
is
in
compliance
16
with
this
section.
17
5.
This
section
shall
not
be
construed
as
removing
or
18
otherwise
affecting
the
property
tax
limitations,
including
19
levy
rate
and
use
limitations,
otherwise
provided
by
law
for
20
any
property
tax
levy
of
the
governmental
entity.
21
Sec.
7.
NEW
SECTION
.
444.26
Use
of
bonds
and
indebtedness
22
for
general
operations
——
prohibition.
23
1.
For
purposes
of
this
section:
24
a.
“General
operations”
means
services
or
activities
25
generally
funded
from
the
governmental
entity’s
general
fund,
26
which
are
necessary
for
the
operation
of
the
governmental
27
entity,
including
salaries
and
benefits,
or
which
are
for
the
28
health
and
welfare
of
the
governmental
entity’s
citizens
or
29
primarily
intended
to
benefit
all
residents
of
the
governmental
30
entity,
but
excluding
services
financed
by
statutory
funds
31
other
than
a
debt
service
fund.
32
b.
“Governmental
entity”
means
any
unit
of
government
33
or
other
public
body
or
public
corporation,
including
any
34
intergovernmental
entity,
that
has
the
power
to
impose
or
35
-5-
LSB
6158HV
(4)
91
md/jh
5/
57
H.F.
2745
certify
a
property
tax
levy.
1
2.
On
or
after
July
1,
2026,
the
governing
body
of
a
2
governmental
entity
shall
not
issue
bonds
or
other
indebtedness
3
payable
from
an
ad
valorem
property
tax
levy
for
the
purpose
of
4
funding
the
general
operations
of
the
governmental
entity
or
5
otherwise
use
proceeds
from
the
sale
of
bonds
or
issuance
of
6
other
indebtedness
to
fund
general
operations.
7
3.
The
department
of
management,
following
consultation
8
with
the
city
finance
committee
and
the
county
finance
9
committee,
may
adopt
rules
under
chapter
17A
for
governmental
10
entities
to
implement
this
section.
11
DIVISION
II
12
COMMERCIAL
AND
INDUSTRIAL
PROPERTY
ASSESSMENT
LIMITATIONS
13
Sec.
8.
Section
441.21,
subsection
5,
paragraph
b,
14
subparagraph
(2),
subparagraph
divisions
(a)
and
(b),
Code
15
2026,
are
amended
to
read
as
follows:
16
(a)
An
amount
equal
to
the
product
of
the
assessment
17
limitation
percentage
applicable
to
residential
property
under
18
subsection
4
for
that
assessment
year
multiplied
by
the
actual
19
value
of
the
property
that
exceeds
zero
dollars
but
does
not
20
exceed
one
three
hundred
fifty
thousand
dollars.
21
(b)
An
amount
equal
to
ninety
percent
of
the
actual
value
of
22
the
property
for
that
assessment
year
that
exceeds
one
three
23
hundred
fifty
thousand
dollars.
24
Sec.
9.
Section
441.21,
subsection
5,
paragraph
c,
25
subparagraph
(2),
subparagraph
divisions
(a)
and
(b),
Code
26
2026,
are
amended
to
read
as
follows:
27
(a)
An
amount
equal
to
the
product
of
the
assessment
28
limitation
percentage
applicable
to
residential
property
under
29
subsection
4
for
that
assessment
year
multiplied
by
the
actual
30
value
of
the
property
that
exceeds
zero
dollars
but
does
not
31
exceed
one
three
hundred
fifty
thousand
dollars.
32
(b)
An
amount
equal
to
ninety
percent
of
the
actual
value
of
33
the
property
for
that
assessment
year
that
exceeds
one
three
34
hundred
fifty
thousand
dollars.
35
-6-
LSB
6158HV
(4)
91
md/jh
6/
57
H.F.
2745
Sec.
10.
Section
441.21,
subsection
5,
paragraph
e,
1
subparagraphs
(1),
(2),
and
(3),
Code
2026,
are
amended
to
read
2
as
follows:
3
(1)
For
the
fiscal
year
beginning
July
1,
2023,
there
4
is
appropriated
from
the
general
fund
of
the
state
to
the
5
department
of
revenue
the
sum
of
one
hundred
twenty-two
million
6
three
hundred
fifty
thousand
dollars
to
be
used
for
payments
7
under
this
paragraph
calculated
as
a
result
of
the
assessment
8
limitations
imposed
under
paragraph
“b”
,
subparagraph
(2),
9
subparagraph
division
(a),
and
paragraph
“c”
,
subparagraph
(2),
10
subparagraph
division
(a).
For
each
fiscal
year
beginning
11
on
or
after
July
1,
2024,
but
before
July
1,
2027,
there
12
is
appropriated
from
the
general
fund
of
the
state
to
the
13
department
of
revenue
the
sum
of
one
hundred
twenty-five
14
million
dollars
to
be
used
for
payments
under
this
paragraph
15
calculated
as
a
result
of
the
assessment
limitations
imposed
16
under
paragraph
“b”
,
subparagraph
(2),
subparagraph
division
17
(a),
and
paragraph
“c”
,
subparagraph
(2),
subparagraph
division
18
(a).
19
(2)
For
fiscal
years
beginning
on
or
after
July
1,
2023,
but
20
before
July
1,
2027,
each
county
treasurer
shall
be
paid
by
the
21
department
of
revenue
an
amount
calculated
under
subparagraph
22
(4)
for
the
applicable
fiscal
year
.
If
an
amount
appropriated
23
for
the
fiscal
year
is
insufficient
to
make
all
payments
as
24
calculated
under
subparagraph
(4),
the
director
of
revenue
25
shall
prorate
the
payments
to
the
county
treasurers
and
shall
26
notify
the
county
auditors
of
the
pro
rata
percentage
on
or
27
before
September
30.
28
(3)
On
or
before
July
1
of
each
applicable
fiscal
year,
the
29
assessor
shall
report
to
the
county
auditor
that
portion
of
the
30
total
actual
value
of
all
commercial
property
and
industrial
31
property
in
the
county
that
is
subject
to
the
assessment
32
limitations
imposed
under
paragraph
“b”
,
subparagraph
(2),
33
subparagraph
division
(a),
and
paragraph
“c”
,
subparagraph
(2),
34
subparagraph
division
(a),
for
the
assessment
year
used
to
35
-7-
LSB
6158HV
(4)
91
md/jh
7/
57
H.F.
2745
calculate
the
taxes
due
and
payable
in
that
fiscal
year.
1
Sec.
11.
Section
441.21,
subsection
5,
paragraph
e,
2
subparagraph
(4),
unnumbered
paragraph
1,
Code
2026,
is
amended
3
to
read
as
follows:
4
On
or
before
September
1
of
each
applicable
fiscal
year,
the
5
county
auditor
shall
prepare
a
statement,
based
on
the
report
6
received
in
subparagraph
(3)
and
information
transmitted
to
7
the
county
auditor
under
chapter
434
,
listing
for
each
taxing
8
district
in
the
county:
9
Sec.
12.
RETROACTIVE
APPLICABILITY.
The
following
apply
10
retroactively
to
assessment
years
beginning
on
or
after
January
11
1,
2026:
12
1.
The
section
of
this
division
of
this
Act
amending
13
section
441.21,
subsection
5,
paragraph
“b”,
subparagraph
(2),
14
subparagraph
divisions
(a)
and
(b).
15
2.
The
section
of
this
division
of
this
Act
amending
16
section
441.21,
subsection
5,
paragraph
“c”,
subparagraph
(2),
17
subparagraph
divisions
(a)
and
(b).
18
DIVISION
III
19
HOMESTEAD
PROPERTY
TAX
EXEMPTION
20
Sec.
13.
Section
427.1,
Code
2026,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
43.
Residential
homestead
property.
23
a.
For
assessment
years
beginning
on
or
after
January
1,
24
2026,
an
exemption
from
taxation
shall
be
allowed
on
each
25
property
classified
as
residential
property
as
defined
in
26
section
441.21,
subsection
14,
that
is
a
homestead
receiving
27
the
homestead
credit
under
chapter
425,
subchapter
I,
for
the
28
assessment
year.
The
exemption
under
this
subsection
shall
be
29
in
addition
to
any
exemption
or
credit
for
such
property
under
30
any
other
provision
of
law,
if
applicable.
The
exemption
from
31
taxation
under
this
subsection
shall
be
ten
percent
of
the
32
taxable
value
of
the
property
or
twenty-five
thousand
dollars
33
in
taxable
value,
whichever
is
less.
However,
the
exemption
34
under
this
subsection
shall
not
apply
to
a
property
tax
imposed
35
-8-
LSB
6158HV
(4)
91
md/jh
8/
57
H.F.
2745
by
a
school
district.
1
b.
Section
25B.7,
subsection
1,
shall
not
apply
to
the
2
property
tax
exemption
provided
in
this
subsection.
3
Sec.
14.
RETROACTIVE
APPLICABILITY.
This
division
of
this
4
Act
applies
retroactively
to
assessment
years
beginning
on
or
5
after
January
1,
2026.
6
DIVISION
IV
7
SECURE
AN
ADVANCED
VISION
FOR
EDUCATION
FUND
——
EQUITY
TRANSFER
8
PERCENTAGE
——
FUTURE
REPEAL
9
Sec.
15.
Section
423.2,
subsection
12,
Code
2026,
is
amended
10
to
read
as
follows:
11
12.
The
sales
tax
rate
of
six
percent
is
reduced
to
five
12
percent
on
January
1,
2051
2071
.
13
Sec.
16.
Section
423.2A,
subsection
2,
paragraph
c,
Code
14
2026,
is
amended
to
read
as
follows:
15
c.
Transfer
one-sixth
of
the
remaining
revenues
to
the
16
secure
an
advanced
vision
for
education
fund
created
in
section
17
423F.2
.
This
paragraph
“c”
is
repealed
January
1,
2051
2071
.
18
Sec.
17.
Section
423.5,
subsection
4,
Code
2026,
is
amended
19
to
read
as
follows:
20
4.
The
use
tax
rate
of
six
percent
is
reduced
to
five
21
percent
on
January
1,
2051
2071
.
22
Sec.
18.
Section
423.43,
subsection
1,
paragraph
b,
Code
23
2026,
is
amended
to
read
as
follows:
24
b.
Subsequent
to
the
deposit
into
the
general
fund
of
25
the
state
and
after
the
transfer
of
such
revenues
collected
26
under
chapter
423B
,
the
department
shall
transfer
one-sixth
of
27
such
remaining
revenues
to
the
secure
an
advanced
vision
for
28
education
fund
created
in
section
423F.2
.
This
paragraph
is
29
repealed
January
1,
2051
2071
.
30
Sec.
19.
Section
423F.2,
subsection
3,
paragraph
b,
31
subparagraph
(2),
subparagraph
division
(b),
Code
2026,
is
32
amended
to
read
as
follows:
33
(b)
For
each
fiscal
year
beginning
on
or
after
July
1,
34
2020,
but
before
July
1,
2026,
the
equity
transfer
percentage
35
-9-
LSB
6158HV
(4)
91
md/jh
9/
57
H.F.
2745
is
equal
to
the
equity
transfer
percentage
for
the
immediately
1
preceding
fiscal
year,
unless
the
amount
of
moneys
available
2
in
the
secure
an
advanced
vision
for
education
fund
in
the
3
immediately
preceding
fiscal
year
equals
or
exceeds
one
hundred
4
two
percent
of
the
amount
of
moneys
available
in
the
fund
for
5
the
fiscal
year
prior
to
the
immediately
preceding
fiscal
year,
6
in
which
case
the
equity
transfer
percentage
shall
be
the
7
equity
transfer
percentage
for
the
immediately
preceding
fiscal
8
year
plus
one
percent
subject
to
the
limitation
in
subparagraph
9
division
(c).
10
Sec.
20.
Section
423F.2,
subsection
3,
paragraph
b,
11
subparagraph
(2),
subparagraph
division
(c),
Code
2026,
is
12
amended
by
striking
the
subparagraph
division
and
inserting
in
13
lieu
thereof
the
following:
14
(c)
(i)
For
the
fiscal
year
beginning
July
1,
2026,
the
15
equity
transfer
percentage
is
ten
percent.
16
(ii)
For
the
fiscal
year
beginning
July
1,
2027,
the
equity
17
transfer
percentage
is
twelve
and
one-half
percent.
18
(iii)
For
the
fiscal
year
beginning
July
1,
2028,
the
equity
19
transfer
percentage
is
fifteen
percent.
20
(iv)
For
the
fiscal
year
beginning
July
1,
2029,
the
equity
21
transfer
percentage
is
seventeen
and
one-half
percent.
22
(v)
For
the
fiscal
year
beginning
July
1,
2030,
the
equity
23
transfer
percentage
is
twenty
percent.
24
(vi)
For
the
fiscal
year
beginning
July
1,
2031,
the
equity
25
transfer
percentage
is
twenty-two
and
one-half
percent.
26
(vii)
For
the
fiscal
year
beginning
July
1,
2032,
the
equity
27
transfer
percentage
is
twenty-five
percent.
28
(viii)
For
the
fiscal
year
beginning
July
1,
2033,
the
29
equity
transfer
percentage
is
twenty-seven
and
one-half
30
percent.
31
(ix)
For
the
fiscal
year
beginning
July
1,
2034,
and
each
32
fiscal
year
thereafter,
the
equity
transfer
percentage
is
33
thirty
percent.
34
Sec.
21.
Section
423F.6,
Code
2026,
is
amended
to
read
as
35
-10-
LSB
6158HV
(4)
91
md/jh
10/
57
H.F.
2745
follows:
1
423F.6
Repeal.
2
This
chapter
is
repealed
January
1,
2051
2071
.
3
Sec.
22.
SCHOOL
DISTRICT
FUNDING
RECONCILIATION.
4
For
amounts
allocated
under
section
423F.2
for
fiscal
5
years
beginning
on
or
after
July
1,
2026,
the
department
of
6
management
shall
adjust
or
reconcile
actual
amounts
to
be
7
received
by
school
districts
in
the
fiscal
year
immediately
8
following
the
fiscal
year
during
which
the
revenues
were
9
collected.
10
DIVISION
V
11
PROPERTY
PARCEL
INFORMATION
12
Sec.
23.
Section
331.510,
Code
2026,
is
amended
by
adding
13
the
following
new
subsection:
14
NEW
SUBSECTION
.
5.
a.
An
annual
report
not
later
15
than
January
1
to
the
department
of
management
containing
16
parcel-level
property
data,
including
parcel
identification
17
information,
location,
size,
valuation,
classification,
types
18
of
structures
and
improvements,
exemptions,
credits,
historical
19
amounts
of
property
taxes
due
and
payable,
and
whether
the
20
parcel
is
subject
to
a
division
of
revenue.
21
b.
In
addition
to
the
information
required
under
paragraph
22
“a”
,
the
department
of
management
may
require
additional
23
parcel-level
data
deemed
necessary
by
the
director
of
the
24
department
of
management.
The
department
shall
prescribe
the
25
form
and
manner
of
submitting
the
annual
report
under
this
26
subsection.
27
DIVISION
VI
28
URBAN
RENEWAL
29
Sec.
24.
Section
15A.1,
subsection
1,
paragraph
b,
Code
30
2026,
is
amended
to
read
as
follows:
31
b.
For
purposes
of
this
chapter
,
“economic
development”
32
means
private
or
joint
public
and
private
investment
involving
33
the
creation
of
new
jobs
and
income
or
the
retention
of
34
existing
jobs
and
income
that
would
otherwise
be
lost
or
the
35
-11-
LSB
6158HV
(4)
91
md/jh
11/
57
H.F.
2745
provision
of
workforce
housing
.
1
Sec.
25.
Section
15A.1,
subsection
2,
Code
2026,
is
amended
2
by
adding
the
following
new
paragraph:
3
NEW
PARAGRAPH
.
e.
Development
policies
that
advance
the
4
development
of
workforce
housing.
5
Sec.
26.
Section
403.17,
subsection
14,
Code
2026,
is
6
amended
to
read
as
follows:
7
14.
“Low
or
and
moderate
income
families”
means
those
8
families,
including
single
person
households,
earning
no
9
more
than
eighty
percent
of
the
higher
of
the
median
family
10
income
of
the
county
or
the
statewide
nonmetropolitan
area
as
11
determined
by
the
latest
United
States
department
of
housing
12
and
urban
development,
section
8
income
guidelines.
13
Sec.
27.
Section
403.17,
Code
2026,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
14A.
“Low
and
moderate
income
family
16
housing”
means
housing
for
low
and
moderate
income
families
and
17
includes
housing
that
meets
the
requirements
of
section
15.353.
18
Sec.
28.
Section
403.19,
subsection
2,
paragraph
a,
Code
19
2026,
is
amended
to
read
as
follows:
20
a.
That
portion
of
the
taxes
each
year
in
excess
of
such
21
amount
shall
be
allocated
to
and
when
collected
be
paid
into
22
a
special
fund
of
the
municipality
to
pay
the
principal
of
23
and
interest
on
loans,
moneys
advanced
to,
or
indebtedness,
24
whether
funded,
refunded,
assumed,
or
otherwise,
including
25
bonds
issued
under
the
authority
of
section
403.9,
subsection
26
1
,
incurred
by
the
municipality
to
finance
or
refinance,
in
27
whole
or
in
part,
an
urban
renewal
project
within
the
area,
28
and
to
provide
assistance
for
low
and
moderate
income
family
29
housing
as
provided
in
section
403.22
.
However,
except
30
as
provided
in
paragraph
“b”
,
taxes
for
the
regular
and
31
voter-approved
physical
plant
and
equipment
levy
of
a
school
32
district
imposed
pursuant
to
section
298.2
;
and
taxes
for
the
33
instructional
support
program
of
a
school
district
imposed
34
pursuant
to
section
257.19
,
;
taxes
for
the
payment
of
bonds
35
-12-
LSB
6158HV
(4)
91
md/jh
12/
57
H.F.
2745
and
interest
of
each
taxing
district
,
;
foundation
property
1
taxes
of
a
school
district
imposed
under
section
257.3
levied
2
against
property
located
in
an
incorporated
area
upon
which
new
3
construction
or
renovations
begin
on
or
after
the
effective
4
date
of
this
division
of
this
Act,
unless
such
construction
or
5
renovations
were
approved
and
subject
to
an
agreement
adopted
6
before
January
1,
2026;
taxes
for
emergency
medical
services
7
imposed
pursuant
to
chapters
357F,
357G,
or
422D;
and
taxes
8
imposed
under
section
346.27,
subsection
22
,
related
to
joint
9
county-city
buildings
shall
be
collected
against
all
taxable
10
property
within
the
taxing
district
without
limitation
by
the
11
provisions
of
this
subsection
.
12
Sec.
29.
Section
403.19,
subsection
2,
Code
2026,
is
amended
13
by
adding
the
following
new
paragraph:
14
NEW
PARAGRAPH
.
e.
For
urban
renewal
areas
for
which
an
15
ordinance
providing
for
a
division
of
revenue
is
not
limited
16
in
duration
under
section
403.17,
subsection
10,
or
section
17
403.22,
subsection
5,
after
twenty
years
following
the
18
effective
date
of
this
division
of
this
Act
or
after
twenty
19
years
from
the
calendar
year
following
the
calendar
year
in
20
which
the
municipality
first
certifies
to
the
county
auditor
21
the
amount
of
any
loans,
advances,
indebtedness,
or
bonds
which
22
qualify
for
payment
from
the
division
of
revenue,
whichever
23
is
later,
the
amount
determined
under
paragraph
“a”
that
24
may
be
paid
into
the
municipality’s
special
fund
shall
not
25
exceed
sixty
percent
of
the
amount
otherwise
determined
under
26
paragraph
“a”
but
for
this
paragraph
and
such
excess
amounts
27
shall
be
allocated
and
paid
to
the
respective
taxing
districts
28
in
the
same
manner
as
amounts
under
subsection
1.
The
29
municipality
may
exceed
the
limitation
in
this
paragraph
to
the
30
extent
necessary
for
payments
of
bonds
or
other
indebtedness
31
incurred
before
the
effective
date
of
this
division
of
this
32
Act.
This
paragraph
shall
not
apply
to
divisions
of
revenue
33
established
by
community
colleges
under
chapter
260E
or
rural
34
improvement
zones
under
chapter
357H.
35
-13-
LSB
6158HV
(4)
91
md/jh
13/
57
H.F.
2745
Sec.
30.
Section
403.19,
Code
2026,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
3A.
Unless
otherwise
limited
in
duration
3
under
section
403.17,
subsection
10,
an
ordinance
providing
4
for
a
division
of
revenue
under
this
section
that
is
adopted
5
on
or
after
the
effective
date
of
this
division
of
this
Act
6
shall
be
limited
to
twenty-three
years
from
the
calendar
year
7
following
the
calendar
year
in
which
the
municipality
first
8
certifies
to
the
county
auditor
the
amount
of
any
loans,
9
advances,
indebtedness,
or
bonds
that
qualify
for
payment
10
from
the
division
of
revenue
provided
for
in
this
section.
11
The
ordinance
shall
terminate
and
be
of
no
further
force
and
12
effect
following
the
twenty-three-year
period
provided
in
this
13
subsection.
This
subsection
shall
not
apply
to
divisions
of
14
revenue
established
by
community
colleges
under
chapter
260E
or
15
rural
improvement
zones
under
chapter
357H.
16
Sec.
31.
Section
403.22,
subsection
1,
paragraphs
a,
b,
and
17
c,
Code
2026,
are
amended
to
read
as
follows:
18
a.
For
a
municipality
with
a
population
over
fifteen
five
19
thousand,
the
amount
to
be
provided
for
low
and
moderate
income
20
family
housing
for
such
projects
shall
be
either
equal
to
21
or
greater
than
the
percentage
of
the
original
project
cost
22
that
is
equal
to
the
percentage
of
low
and
moderate
income
23
residents
for
the
county
in
which
the
urban
renewal
area
is
24
located
as
determined
by
the
United
States
department
of
25
housing
and
urban
development
using
section
8
guidelines
or
26
by
providing
such
other
amount
as
set
out
in
a
plan
adopted
27
by
the
municipality
and
approved
by
the
economic
development
28
authority
if
the
municipality
can
show
that
it
cannot
undertake
29
the
project
if
it
has
to
meet
the
low
and
moderate
income
30
assistance
requirements
.
However,
the
amount
provided
for
low
31
and
moderate
income
family
housing
for
such
projects
shall
not
32
be
less
than
an
amount
equal
to
ten
percent
of
the
original
33
project
cost
required
to
exceed
the
lesser
of
twenty
percent
34
of
the
original
project
cost
or
three
hundred
fifty
thousand
35
-14-
LSB
6158HV
(4)
91
md/jh
14/
57
H.F.
2745
dollars
if
the
municipality
is
a
city
or
three
hundred
thousand
1
dollars
if
the
municipality
is
a
county
.
2
b.
For
a
municipality
with
a
population
of
fifteen
thousand
3
or
less,
the
amount
to
be
provided
for
low
and
moderate
income
4
family
housing
shall
be
the
same
as
for
a
municipality
of
over
5
fifteen
thousand
in
population,
except
that
a
municipality
6
of
fifteen
thousand
or
less
in
population
is
not
subject
to
7
the
requirement
to
provide
not
less
than
an
amount
equal
to
8
ten
percent
of
the
original
project
cost
for
low
and
moderate
9
income
family
housing.
10
c.
b.
For
a
municipality
with
a
population
of
five
thousand
11
or
less,
the
municipality
need
not
provide
any
low
and
moderate
12
income
family
housing
assistance
if
the
municipality
has
13
completed
a
housing
needs
assessment
meeting
the
standards
set
14
out
by
the
economic
development
authority,
which
shows
no
low
15
and
moderate
income
housing
need,
and
the
economic
development
16
authority
agrees
that
no
low
and
moderate
income
family
housing
17
assistance
is
needed
.
18
Sec.
32.
Section
403.22,
subsection
5,
paragraph
a,
Code
19
2026,
is
amended
to
read
as
follows:
20
a.
Except
For
ordinances
providing
for
a
division
of
21
revenue
adopted
before
the
effective
date
of
this
division
of
22
this
Act,
except
for
a
municipality
with
a
population
under
23
fifteen
thousand,
the
division
of
the
revenue
under
section
24
403.19
for
each
project
under
this
section
shall
be
limited
25
to
tax
collections
for
ten
fiscal
years
beginning
with
the
26
second
fiscal
year
after
the
year
in
which
the
municipality
27
first
certifies
to
the
county
auditor
the
amount
of
any
loans,
28
advances,
indebtedness,
or
bonds
which
qualify
for
payment
from
29
the
division
of
the
revenue
in
connection
with
the
project.
30
Sec.
33.
Section
403.22,
subsection
5,
paragraph
d,
Code
31
2026,
is
amended
by
striking
the
paragraph.
32
Sec.
34.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
33
deemed
of
immediate
importance,
takes
effect
upon
enactment.
34
Sec.
35.
APPLICABILITY.
The
following
applies
to
property
35
-15-
LSB
6158HV
(4)
91
md/jh
15/
57
H.F.
2745
taxes
due
and
payable
in
fiscal
years
beginning
on
or
after
1
July
1,
2027:
2
The
section
of
this
division
of
this
Act
amending
section
3
403.19,
subsection
2,
paragraph
“a”.
4
Sec.
36.
APPLICABILITY.
The
following
apply
to
urban
5
renewal
areas
in
existence
on
or
established
on
or
after
the
6
effective
date
of
this
division
of
this
Act:
7
1.
The
section
of
this
division
of
this
Act
amending
section
8
403.22,
subsection
1,
paragraphs
“a”,
“b”,
and
“c”.
9
2.
The
section
of
this
division
of
this
Act
amending
section
10
403.22,
subsection
5,
paragraph
“d”.
11
DIVISION
VII
12
ASSESSMENT
PROCEDURES
13
Sec.
37.
Section
441.21,
subsection
3,
Code
2026,
is
amended
14
to
read
as
follows:
15
3.
a.
“Actual
value”
,
“taxable
value”
,
or
“assessed
16
value”
as
used
in
other
sections
of
the
Code
in
relation
to
17
assessment
of
property
for
taxation
shall
mean
the
valuations
18
as
determined
by
this
section
;
however,
other
provisions
of
19
the
Code
providing
special
methods
or
formulas
for
assessing
20
or
valuing
specified
property
shall
remain
in
effect,
but
this
21
section
shall
be
applicable
to
the
extent
consistent
with
such
22
provisions.
The
assessor
and
department
of
revenue
shall
23
disclose
at
the
written
request
of
the
taxpayer
all
information
24
in
any
formula
or
method
used
to
determine
the
actual
value
of
25
the
taxpayer’s
property.
In
addition,
for
assessment
years
26
beginning
on
or
after
January
1,
2027,
if
the
taxpayer’s
27
property
has
increased
in
actual
value
by
ten
percent
or
more
28
from
the
immediately
preceding
assessment
year,
the
assessor
29
shall
provide
the
taxpayer
with
a
statement
of
the
reasons
30
for
the
increase
in
actual
value,
information
specifying
the
31
portion
of
actual
value
increase
attributable
to
a
change
in
32
classification,
revaluation,
new
construction,
improvements,
or
33
renovations
to
the
property,
and
all
information
in
any
formula
34
or
method
used
to
determine
the
actual
value.
35
-16-
LSB
6158HV
(4)
91
md/jh
16/
57
H.F.
2745
b.
(1)
For
assessment
years
beginning
before
January
1
1,
2018,
the
burden
of
proof
shall
be
upon
any
complainant
2
attacking
such
valuation
as
excessive,
inadequate,
inequitable,
3
or
capricious.
However,
in
protest
or
appeal
proceedings
when
4
the
complainant
offers
competent
evidence
by
at
least
two
5
disinterested
witnesses
that
the
market
value
of
the
property
6
is
less
than
the
market
value
determined
by
the
assessor,
the
7
burden
of
proof
thereafter
shall
be
upon
the
officials
or
8
persons
seeking
to
uphold
such
valuation
to
be
assessed.
9
(2)
(1)
For
assessment
years
beginning
on
or
after
January
10
1,
2018,
the
Except
as
provided
in
subparagraph
(3),
the
burden
11
of
proof
shall
be
upon
any
complainant
attacking
such
valuation
12
as
excessive,
inadequate,
inequitable,
or
capricious.
However,
13
in
protest
or
appeal
proceedings
when
the
complainant
offers
14
competent
evidence
that
the
market
value
of
the
property
is
15
different
than
the
market
value
determined
by
the
assessor,
16
the
burden
of
proof
thereafter
shall
be
upon
the
officials
or
17
persons
seeking
to
uphold
such
valuation
to
be
assessed.
18
(3)
(2)
If
the
classification
of
a
property
has
been
19
previously
adjudicated
by
the
property
assessment
appeal
board
20
or
a
court
as
part
of
an
appeal
under
this
chapter
,
there
21
is
a
presumption
that
the
classification
of
the
property
has
22
not
changed
for
each
of
the
four
subsequent
assessment
years,
23
unless
a
subsequent
such
adjudication
of
the
classification
of
24
the
property
has
occurred,
and
the
burden
of
demonstrating
a
25
change
in
use
shall
be
upon
the
person
asserting
a
change
to
26
the
property’s
classification.
27
(3)
For
assessment
years
beginning
on
or
after
January
1,
28
2027,
if
the
taxpayer’s
property
actual
value
increased
by
ten
29
percent
or
more
from
the
immediately
preceding
assessment
year,
30
including
an
increase
as
the
result
of
an
equalization
order,
31
and
the
property
did
not
change
classification
or
primary
use
32
and
the
increase
in
actual
value
is
not
the
result
of
new
33
construction,
improvements,
or
renovations
to
the
property,
the
34
actual
value
so
determined
by
the
assessor
is
not
presumed
to
35
-17-
LSB
6158HV
(4)
91
md/jh
17/
57
H.F.
2745
be
the
actual
value
and
in
any
protest
or
appeal
the
assessor
1
shall
have
the
burden
of
proof
that
the
valuation
is
not
2
excessive,
inadequate,
inequitable,
or
capricious.
3
Sec.
38.
Section
441.33,
Code
2026,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
3.
Ex
parte
communications
with
board
of
6
review
members
are
prohibited
in
protests
before
the
board.
7
DIVISION
VIII
8
LOCAL
GOVERNMENT
EFFICIENCY
GRANT
PROGRAM
9
Sec.
39.
NEW
SECTION
.
28E.20
Local
government
efficiency
10
grant
program.
11
1.
A
local
government
efficiency
grant
fund
is
created
12
and
established
as
a
separate
and
distinct
fund
in
the
13
state
treasury
under
the
control
of
Iowa
state
university
14
of
science
and
technology.
For
purposes
of
this
section,
15
“local
government”
means
a
county,
city,
township,
or
any
16
special-purpose
district
or
authority.
17
2.
a.
There
is
appropriated
from
the
general
fund
of
18
the
state
to
the
local
government
efficiency
grant
fund
for
19
the
fiscal
year
beginning
July
1,
2026,
and
ending
July
1,
20
2027,
ten
million
dollars.
In
addition
to
moneys
deposited
21
in
the
local
government
efficiency
grant
fund
pursuant
to
22
appropriations
made
by
the
general
assembly,
Iowa
state
23
university
of
science
and
technology
or
the
commission
24
established
under
paragraph
“c”
may
accept
gifts,
grants,
25
bequests,
and
other
private
contributions,
as
well
as
state
26
or
federal
funds,
and
shall
deposit
the
moneys
in
the
fund
27
to
be
used
for
purposes
of
this
section.
Moneys
in
the
fund
28
are
appropriated
to
the
Iowa
state
university
of
science
and
29
technology
and
shall
be
used
only,
after
commission
approval,
30
to
provide
grants
to
local
governments
to
assist
in
efforts
31
to
increase
government
efficiency,
including
but
not
limited
32
to
efforts
to
consolidate
government
positions
and
pursue
33
agreements
with
other
local
governments
to
share
services
34
and
reduce
the
use
of
property
tax
revenues
for
such
shared
35
-18-
LSB
6158HV
(4)
91
md/jh
18/
57
H.F.
2745
services.
Grant
funds
may
be
used
by
the
local
government
1
for
costs
to
implement
efficiency
initiatives
including
2
but
not
limited
to
service-sharing
or
service-consolidation
3
initiatives
and
transitional
or
temporary
costs
of
eliminating
4
services,
and
to
the
extent
necessary
shall
be
coordinated
with
5
Iowa
cooperative
extension
service
in
agriculture
and
home
6
economics
of
Iowa
state
university
of
science
and
technology
7
and
extension
districts
under
chapter
176A.
8
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
9
that
remain
unawarded
at
the
close
of
the
fiscal
year
shall
10
not
revert
but
shall
remain
in
the
fund
for
expenditure
in
11
succeeding
fiscal
years.
Notwithstanding
section
12C.7,
12
subsection
2,
interest
earned
on
moneys
in
the
local
government
13
efficiency
grant
fund
shall
be
credited
to
the
fund.
14
c.
A
local
government
efficiency
commission
shall
be
15
established
at
Iowa
state
university
of
science
and
technology
16
comprised
of
not
more
than
ten
individuals
appointed
by
the
17
president
of
the
university
who
have
experience
in
local
18
government
operations
and
budgeting,
local
government
planning,
19
and
cooperative
extension
services.
The
local
government
20
efficiency
commission
shall
review
and
approve
or
deny
each
21
grant
application.
22
3.
The
local
government
efficiency
commission
shall
23
establish
and
administer
the
grant
program
to
provide
for
the
24
allocation
of
moneys
in
the
fund
in
the
form
of
competitive
25
grants
to
local
governments
in
accordance
with
the
purposes
and
26
objectives
of
this
section.
The
rules
for
the
program
adopted
27
by
the
commission
shall
specify
the
eligibility
of
applicants,
28
eligible
services
and
items
for
grant
funding,
the
electronic
29
application
process,
and
the
maximum
award
per
grant.
30
DIVISION
IX
31
FIRSTHOME
IOWA
ACCOUNTS
32
Sec.
40.
Section
12G.2,
Code
2026,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
6.
Create
strategies
for
coordination
of
35
-19-
LSB
6158HV
(4)
91
md/jh
19/
57
H.F.
2745
the
program
with
the
FirstHome
Iowa
program
trust
established
1
in
chapter
12L.
2
Sec.
41.
NEW
SECTION
.
12L.1
FirstHome
Iowa
program
——
3
purpose
and
definitions.
4
1.
The
general
assembly
finds
that
the
general
welfare
and
5
well-being
of
the
state
are
directly
related
to
homeownership
6
of
the
citizens
of
the
state,
and
that
a
vital
and
valid
7
public
purpose
is
served
by
the
creation
and
implementation
8
of
programs
which
encourage
and
make
possible
the
attainment
9
of
homeownership
by
the
greatest
number
of
citizens
of
the
10
state.
The
general
welfare
of
the
citizens
of
the
state
will
11
be
enhanced
by
establishing
a
FirstHome
Iowa
program
which
12
allows
citizens
of
the
state
to
invest
money
in
a
public
trust
13
for
future
application
to
the
payment
of
qualified
homebuyer
14
expenses.
The
creation
of
the
means
of
encouragement
for
15
citizens
to
invest
in
such
a
program
represents
the
carrying
16
out
of
a
vital
and
valid
public
purpose.
In
order
to
make
17
available
to
the
citizens
of
the
state
an
opportunity
to
fund
18
future
first-time
homeownership,
it
is
necessary
that
a
public
19
trust
be
established
in
which
moneys
may
be
invested
for
future
20
use.
21
2.
As
used
in
this
chapter,
unless
the
context
otherwise
22
requires:
23
a.
“Administrative
fund”
means
the
administrative
fund
24
established
under
section
12L.4.
25
b.
“Beneficiary”
means
the
individual
designated
by
a
26
participation
agreement
to
benefit
from
advance
payments
of
27
qualified
homebuyer
expenses
on
behalf
of
the
beneficiary.
28
c.
“First-time
homebuyer”
means
an
individual
who
is
a
29
resident
of
Iowa
and
who
does
not
own,
either
individually
or
30
jointly,
a
single-family
or
multifamily
residence,
and
who
31
has
not
owned
or
purchased,
either
individually
or
jointly,
a
32
single-family
or
multifamily
residence
for
a
period
of
three
33
years
prior
to
the
date
of
the
qualified
purchase
for
which
the
34
eligible
home
costs
are
paid
or
reimbursed
from
an
account.
35
-20-
LSB
6158HV
(4)
91
md/jh
20/
57
H.F.
2745
d.
“FirstHome
Iowa
program
trust”
or
“trust”
means
the
trust
1
created
under
section
12L.2.
2
e.
“FirstHome
Iowa
program
trust
account”
or
“account”
3
means
an
account
within
the
trust
that
was
established
for
4
the
purpose
of
paying
or
reimbursing
a
beneficiary’s
eligible
5
qualified
homebuyer
expenses
in
connection
with
a
qualified
6
purchase.
7
f.
“Individual”
means
a
natural
person.
8
g.
“Participant”
means
an
individual,
individual’s
legal
9
representative,
trust,
or
estate
that
has
entered
into
a
10
participation
agreement
under
this
chapter,
either
individually
11
or
jointly
with
the
individual’s
spouse,
for
the
advance
12
payment
of
qualified
homebuyer
expenses
on
behalf
of
a
13
beneficiary.
14
h.
“Participation
agreement”
means
an
agreement
between
a
15
participant
and
the
trust
entered
into
under
this
chapter.
16
i.
“Program
fund”
means
the
program
fund
established
under
17
section
12L.4.
18
j.
“Qualified
homebuyer
expenses”
means
any
of
the
19
following:
20
(1)
A
down
payment
or
closing
costs
for
the
qualified
21
purchase
of
a
single-family
residence
in
Iowa
that
is
the
22
principal
residence
of
the
beneficiary
if
such
beneficiary
is
a
23
first-time
homebuyer
with
respect
to
such
purchase.
24
(2)
A
cost,
fee,
tax,
or
payment
incurred
by,
or
charged
25
or
assigned
to,
a
beneficiary
as
part
of
the
purchase
under
26
subparagraph
(1)
and
listed
on
the
statement
of
receipts
and
27
disbursements
for
the
sale,
including
any
statement
prescribed
28
by
12
C.F.R.
§1026.38,
as
amended.
29
(3)
Any
United
States
veterans
administration
funding
30
fee
incurred
by,
or
charged
or
assigned
to,
a
beneficiary
in
31
connection
with
a
veterans
administration
home
loan
guaranty
32
program.
33
k.
“Qualified
purchase”
means
the
purchase
of
a
34
single-family
residence
in
Iowa
by
the
account’s
beneficiary
35
-21-
LSB
6158HV
(4)
91
md/jh
21/
57
H.F.
2745
ninety
or
more
days
after
the
date
the
participant
first
opened
1
the
account.
2
l.
“Resident”
means
the
same
as
defined
in
section
422.4.
3
m.
“Single-family
residence”
means
a
single-family
4
residence
owned
and
occupied
by
a
beneficiary
as
the
5
beneficiary’s
principal
residence,
including
but
not
limited
6
to
a
manufactured
home,
mobile
home,
condominium
unit,
or
7
cooperative.
8
Sec.
42.
NEW
SECTION
.
12L.2
Creation
of
FirstHome
Iowa
9
program
trust.
10
A
FirstHome
Iowa
program
trust
is
created.
The
treasurer
of
11
state
is
the
trustee
of
the
trust,
and
has
all
powers
necessary
12
to
carry
out
and
effectuate
the
purposes,
objectives,
and
13
provisions
of
this
chapter
pertaining
to
the
trust,
including
14
the
power
to
do
all
of
the
following:
15
1.
Make
and
enter
into
contracts
necessary
for
the
16
administration
of
the
trust
created
under
this
chapter.
17
2.
Enter
into
agreements
with
any
financial
institution,
18
the
state,
or
any
federal
or
other
state
agency,
or
other
19
entity
as
required
to
implement
this
chapter.
20
3.
Carry
out
the
duties
and
obligations
of
the
trust
21
pursuant
to
this
chapter.
22
4.
Accept
any
grants,
gifts,
legislative
appropriations,
23
and
other
moneys
from
the
state,
any
unit
of
federal,
state,
or
24
local
government,
or
any
other
person,
firm,
partnership,
or
25
corporation
which
the
treasurer
of
state
shall
deposit
into
the
26
administrative
fund
or
the
program
fund.
27
5.
Carry
out
studies
and
projections
so
the
treasurer
of
28
state
may
advise
participants
regarding
present
and
estimated
29
future
qualified
homebuyer
expenses
and
levels
of
financial
30
participation
in
the
trust
required
in
order
to
enable
31
participants
to
achieve
their
qualifying
purchase
objectives.
32
6.
Participate
in
any
federal,
state,
or
local
governmental
33
program
for
the
benefit
of
the
trust.
34
7.
Procure
insurance
against
any
loss
in
connection
with
the
35
-22-
LSB
6158HV
(4)
91
md/jh
22/
57
H.F.
2745
property,
assets,
or
activities
of
the
trust.
1
8.
Enter
into
participation
agreements
with
participants.
2
9.
Make
payments
to
or
on
behalf
of
beneficiaries
for
3
qualified
homebuyer
expenses
pursuant
to
participation
4
agreements.
5
10.
Make
refunds
to
participants
upon
the
termination
6
of
participation
agreements,
and
partial
nonqualified
7
distributions
to
participants,
pursuant
to
the
provisions,
8
limitations,
and
restrictions
set
forth
in
this
chapter.
9
11.
Invest
moneys
from
the
program
fund
in
any
investments
10
which
are
determined
by
the
treasurer
of
state
to
be
11
appropriate.
12
12.
Engage
investment
advisors,
if
necessary,
to
assist
in
13
the
investment
of
trust
assets.
14
13.
Contract
for
goods
and
services
and
engage
personnel
15
as
necessary,
including
consultants,
actuaries,
managers,
16
legal
counsel,
and
auditors
for
the
purpose
of
rendering
17
professional,
managerial,
and
technical
assistance
and
advice
18
to
the
treasurer
of
state
regarding
trust
administration
and
19
operation.
20
14.
Establish,
impose,
and
collect
administrative
fees
21
and
charges
in
connection
with
transactions
of
the
trust
for
22
deposit
in
the
administrative
fund
and
provide
for
reasonable
23
service
charges.
24
15.
Administer
the
funds
of
the
trust.
25
16.
Adopt
rules
pursuant
to
chapter
17A
for
the
26
administration
of
the
trust.
27
Sec.
43.
NEW
SECTION
.
12L.3
Participation
agreements
for
28
trust.
29
The
trust
may
enter
into
participation
agreements
with
30
participants
on
behalf
of
beneficiaries
pursuant
to
the
31
following
terms
and
agreements:
32
1.
Each
participation
agreement
may
require
a
participant
33
to
agree
to
invest
a
specific
amount
of
money
in
the
trust
34
for
a
specific
period
of
time
for
the
benefit
of
a
specific
35
-23-
LSB
6158HV
(4)
91
md/jh
23/
57
H.F.
2745
beneficiary.
A
participant
shall
not
be
required
to
make
an
1
annual
contribution
on
behalf
of
a
beneficiary.
The
maximum
2
contribution
that
may
be
deducted
for
Iowa
income
tax
purposes
3
shall
be
the
amount
contributed
by
the
participant
during
the
4
applicable
tax
year,
not
to
exceed
five
thousand
five
hundred
5
dollars
per
beneficiary
per
year
adjusted
annually
to
reflect
6
increases
in
the
consumer
price
index.
7
2.
The
execution
of
a
participation
agreement
by
the
8
trust
shall
not
guarantee
in
any
way
that
qualified
homebuyer
9
expenses
will
be
equal
to
projections
and
estimates
provided
by
10
the
trust
or
that
the
beneficiary
named
in
any
participation
11
agreement
will
qualify
for
a
mortgage,
home
loan,
or
other
12
forms
of
credit
for
a
qualified
purchase.
13
3.
a.
A
beneficiary
under
a
participation
agreement
may
be
14
changed
as
permitted
under
rules
adopted
by
the
treasurer
of
15
state
upon
written
request
of
the
participant
as
long
as
the
16
substitute
beneficiary
is
eligible
for
participation.
17
b.
Participation
agreements
may
otherwise
be
freely
amended
18
throughout
their
terms
in
order
to
enable
participants
to
19
increase
or
decrease
the
level
of
participation,
change
the
20
designation
of
beneficiaries,
and
carry
out
similar
matters
as
21
authorized
by
rule.
22
4.
Each
participation
agreement
shall
provide
that
the
23
participation
agreement
may
be
canceled
upon
the
terms
and
24
conditions,
and
upon
payment
of
applicable
fees
and
costs
set
25
forth
and
contained
in
the
rules
adopted
by
the
treasurer
of
26
state.
27
5.
A
participant
may
designate
a
successor
in
accordance
28
with
rules
adopted
by
the
treasurer
of
state.
The
designated
29
successor
shall
succeed
to
the
ownership
of
the
account
in
30
the
event
of
the
death
of
the
participant.
In
the
event
a
31
participant
dies
and
has
not
designated
a
successor
to
the
32
account,
the
following
criteria
shall
apply:
33
a.
The
beneficiary
of
the
account,
if
eighteen
years
of
34
age
or
older,
shall
become
the
owner
of
the
account
as
well
as
35
-24-
LSB
6158HV
(4)
91
md/jh
24/
57
H.F.
2745
remain
the
beneficiary
upon
filing
the
appropriate
forms
in
1
accordance
with
rules
adopted
by
the
treasurer
of
state.
2
b.
If
the
beneficiary
of
the
account
is
under
the
age
of
3
eighteen,
account
ownership
shall
be
transferred
to
the
first
4
surviving
parent
or
other
legal
guardian
of
the
beneficiary
to
5
file
the
appropriate
forms
in
accordance
with
rules
adopted
by
6
the
treasurer
of
state.
7
Sec.
44.
NEW
SECTION
.
12L.4
FirstHome
Iowa
program
and
8
administrative
funds
——
investment
and
payments.
9
1.
a.
The
treasurer
of
state
shall
segregate
moneys
10
received
by
the
trust
into
two
funds:
the
FirstHome
Iowa
11
program
fund
and
the
administrative
fund
to
be
used
for
12
administration
of
the
program.
13
b.
All
moneys
paid
by
participants
in
connection
with
14
participation
agreements
shall
be
deposited
as
received
into
15
separate
accounts
within
the
program
fund.
16
c.
Contributions
to
the
trust
made
by
participants
may
only
17
be
made
in
the
form
of
cash.
18
d.
A
participant
or
beneficiary
may,
directly
or
indirectly,
19
direct
the
investment
of
any
contributions
to
the
trust
or
any
20
earnings
thereon
no
more
than
four
times
in
a
calendar
year.
21
2.
Moneys
accrued
by
participants
in
the
program
fund
of
the
22
trust
may
be
used
for
payments
to
or
on
behalf
of
a
beneficiary
23
for
qualified
homebuyer
expenses.
24
Sec.
45.
NEW
SECTION
.
12L.5
Cancellation
of
agreements.
25
A
participant
may
cancel
a
participation
agreement
at
will.
26
Upon
cancellation
of
a
participation
agreement,
a
participant
27
shall
be
entitled
to
the
return
of
the
participant’s
account
28
balance.
29
Sec.
46.
NEW
SECTION
.
12L.6
Ownership
of
payments
and
30
investment
income
——
transfer
of
ownership
rights.
31
1.
a.
A
participant
retains
ownership
of
all
payments
32
made
under
a
participation
agreement
up
to
the
date
of
33
utilization
for
payment
of
qualified
homebuyer
expenses
for
the
34
beneficiary.
35
-25-
LSB
6158HV
(4)
91
md/jh
25/
57
H.F.
2745
b.
All
income
derived
from
the
investment
of
the
payments
1
made
by
the
participant
shall
be
considered
to
be
held
in
trust
2
for
the
benefit
of
the
beneficiary.
3
2.
In
the
event
the
FirstHome
Iowa
program
is
terminated
4
prior
to
payment
of
qualified
homebuyer
expenses
for
the
5
beneficiary,
the
participant
is
entitled
to
a
refund
of
the
6
participant’s
account
balance.
7
3.
Any
amounts
which
may
be
paid
to
any
person
or
persons
8
pursuant
to
the
FirstHome
Iowa
program
trust
but
which
are
not
9
listed
in
this
section
are
owned
by
the
trust.
10
4.
A
participant
may
transfer
ownership
rights
to
another
11
participant
or
may
transfer
funds
to
another
account
under
the
12
trust.
The
transfer
shall
be
made
and
the
property
distributed
13
in
accordance
with
rules
adopted
by
the
treasurer
of
state
or
14
with
the
terms
of
the
participation
agreement.
15
5.
A
participant
shall
not
be
entitled
to
utilize
any
16
interest
in
the
trust
as
security
for
a
loan.
17
Sec.
47.
NEW
SECTION
.
12L.7
Annual
audited
financial
report
18
to
governor
and
general
assembly.
19
1.
a.
The
treasurer
of
state
shall
submit
an
annual
20
audited
financial
report,
prepared
in
accordance
with
generally
21
accepted
accounting
principles,
on
the
operations
of
the
trust
22
by
November
1
to
the
governor
and
the
general
assembly.
23
b.
The
annual
audit
shall
be
made
either
by
the
auditor
24
of
state
or
by
an
independent
certified
public
accountant
25
designated
by
the
auditor
of
state
and
shall
include
direct
and
26
indirect
costs
attributable
to
the
use
of
outside
consultants,
27
independent
contractors,
and
any
other
persons
who
are
not
28
state
employees.
29
2.
The
annual
audit
shall
be
supplemented
by
all
of
the
30
following
information
prepared
by
the
treasurer
of
state:
31
a.
Any
related
studies
or
evaluations
prepared
in
the
32
preceding
year.
33
b.
A
summary
of
the
benefits
provided
by
the
trust
including
34
the
number
of
participants
and
beneficiaries
in
the
trust.
35
-26-
LSB
6158HV
(4)
91
md/jh
26/
57
H.F.
2745
c.
Any
other
information
which
is
relevant
in
order
to
make
1
a
full,
fair,
and
effective
disclosure
of
the
operations
of
the
2
trust.
3
Sec.
48.
NEW
SECTION
.
12L.8
Tax
considerations.
4
State
income
tax
treatment
of
the
FirstHome
Iowa
program
5
trust
shall
be
as
provided
in
section
422.7,
subsections
46
and
6
47.
7
Sec.
49.
NEW
SECTION
.
12L.9
Property
rights
to
assets
in
8
trust.
9
1.
The
assets
of
the
trust
shall
at
all
times
be
preserved,
10
invested,
and
expended
solely
and
only
for
the
purposes
of
11
the
trust
and
shall
be
held
in
trust
for
the
participants
and
12
beneficiaries.
13
2.
No
property
rights
in
the
trust
shall
exist
in
favor
of
14
the
state.
15
3.
The
assets
of
the
trust
shall
not
be
transferred
or
used
16
by
the
state
for
any
purposes
other
than
the
purposes
of
the
17
trust.
18
Sec.
50.
NEW
SECTION
.
12L.10
Construction.
19
This
chapter
shall
be
construed
liberally
in
order
to
20
effectuate
its
purpose.
21
Sec.
51.
Section
232D.503,
subsection
6,
Code
2026,
is
22
amended
by
adding
the
following
new
paragraph:
23
NEW
PARAGRAPH
.
g.
A
FirstHome
Iowa
program
trust
account
24
established
for
the
minor
pursuant
to
chapter
12L.
25
Sec.
52.
Section
422.7,
Code
2026,
is
amended
by
adding
the
26
following
new
subsections:
27
NEW
SUBSECTION
.
46.
a.
Subtract
the
contribution
that
may
28
be
deducted
for
Iowa
income
tax
purposes
as
a
participant
in
29
the
FirstHome
Iowa
program
trust
pursuant
to
section
12L.3,
30
subsection
1.
For
purposes
of
this
paragraph,
a
participant
31
who
makes
a
contribution
on
or
before
the
date
prescribed
in
32
section
422.21
for
making
and
filing
an
individual
income
tax
33
return,
excluding
extensions,
or
the
date
for
making
and
filing
34
an
individual
income
tax
return
determined
by
the
director
35
-27-
LSB
6158HV
(4)
91
md/jh
27/
57
H.F.
2745
pursuant
to
an
order
issued
under
section
421.17,
subsection
1
30,
may
elect
to
be
deemed
to
have
made
the
contribution
on
the
2
last
day
of
the
preceding
calendar
year.
The
director,
after
3
consultation
with
the
treasurer
of
state,
shall
prescribe
by
4
rule
the
manner
and
method
by
which
a
participant
may
make
an
5
election
authorized
by
the
preceding
sentence.
6
b.
Add
the
amount
resulting
from
the
cancellation
of
7
a
participation
agreement
refunded
to
the
taxpayer
as
a
8
participant
in
the
FirstHome
Iowa
program
trust
to
the
extent
9
previously
deducted
as
a
contribution
to
the
trust.
10
c.
Add,
to
the
extent
previously
deducted
as
a
contribution
11
to
the
trust,
the
amount
resulting
from
a
withdrawal
or
12
transfer
made
by
the
taxpayer
from
the
FirstHome
Iowa
program
13
trust
for
purposes
other
than
the
payment
of
qualified
14
homebuyer
expenses.
15
NEW
SUBSECTION
.
47.
Subtract,
to
the
extent
included,
16
income
from
interest
and
earnings
received
from
the
FirstHome
17
Iowa
program
trust
created
in
chapter
12L.
18
Sec.
53.
Section
541B.4,
Code
2026,
is
amended
by
adding
the
19
following
new
subsections:
20
NEW
SUBSECTION
.
5.
Withdrawal
for
deposit
into
FirstHome
21
Iowa
program
trust
account.
First-time
homebuyer
account
22
balances
under
this
chapter
may
be
withdrawn
without
penalty
or
23
taxation
in
this
state
if
such
withdrawal
is
deposited
in
an
24
account
within
the
FirstHome
Iowa
program
trust
under
chapter
25
12L
within
thirty
days
of
the
withdrawal.
The
treasurer
of
26
state
may
by
rule
provide
for
the
direct
transfer
of
moneys
27
within
an
account
under
this
chapter
to
a
FirstHome
Iowa
28
program
trust
account
and
such
transfer
shall
not
be
subject
to
29
penalty
or
taxation
in
this
state.
30
NEW
SUBSECTION
.
6.
No
new
accounts.
New
accounts
shall
not
31
be
established
under
this
chapter
on
or
after
July
1,
2026.
32
Sec.
54.
Section
627.6,
Code
2026,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
18.
The
debtor’s
interest,
whether
as
35
-28-
LSB
6158HV
(4)
91
md/jh
28/
57
H.F.
2745
participant
or
beneficiary,
in
contributions
and
assets,
1
including
the
accumulated
earnings
and
market
increases
in
2
value,
held
in
an
account
in
the
FirstHome
Iowa
program
trust
3
organized
under
chapter
12L.
4
Sec.
55.
Section
633.108,
subsection
2,
Code
2026,
is
5
amended
by
adding
the
following
new
paragraph:
6
NEW
PARAGRAPH
.
e.
A
FirstHome
Iowa
program
trust
account
7
established
for
the
minor
pursuant
to
chapter
12L.
8
Sec.
56.
Section
633.555,
subsection
1,
Code
2026,
is
9
amended
by
adding
the
following
new
paragraph:
10
NEW
PARAGRAPH
.
f.
An
account
owner
or
participant
under
11
a
FirstHome
Iowa
program
trust
account
established
for
the
12
protected
person
pursuant
to
chapter
12L.
13
Sec.
57.
Section
633.678,
subsection
1,
Code
2026,
is
14
amended
by
adding
the
following
new
paragraph:
15
NEW
PARAGRAPH
.
f.
An
account
owner
or
participant
under
16
a
FirstHome
Iowa
program
trust
account
established
for
the
17
protected
person
pursuant
to
chapter
12L.
18
Sec.
58.
Section
633.681,
subsection
1,
Code
2026,
is
19
amended
by
adding
the
following
new
paragraph:
20
NEW
PARAGRAPH
.
e.
An
account
owner
or
participant
under
21
a
FirstHome
Iowa
program
trust
account
established
for
the
22
protected
person
pursuant
to
chapter
12L.
23
Sec.
59.
APPLICABILITY.
The
following
applies
to
24
contributions
made
under
chapter
12L
on
or
after
July
1,
2026,
25
for
tax
years
ending
on
or
after
that
date:
26
The
section
of
this
division
of
this
Act
enacting
section
27
422.7,
subsections
46
and
47.
28
DIVISION
X
29
VALUATIONS
——
ABNORMAL
TRANSACTIONS
——
REAL
ESTATE
TRANSFER
TAX
30
FORMS
31
Sec.
60.
Section
428A.7,
Code
2026,
is
amended
to
read
as
32
follows:
33
428A.7
Forms
provided
by
director
of
revenue.
34
The
director
of
revenue
shall
prescribe
the
form
of
the
35
-29-
LSB
6158HV
(4)
91
md/jh
29/
57
H.F.
2745
declaration
of
value
and
shall
include
an
appropriate
place
1
for
the
inclusion
of
special
facts
and
circumstances
relating
2
to
the
actual
sales
price
in
real
estate
transfers
including
3
but
not
limited
to
factors
that
distort
market
value
such
as
4
built-to-suit
sales,
sale-leaseback
sales,
leased
fee
sales,
5
and
the
abnormal
transactions
identified
in
section
441.21,
6
subsection
1,
paragraph
“b”
,
subparagraph
(1)
.
The
director
7
shall
provide
an
adequate
number
of
the
declaration
of
value
8
forms
to
each
county
recorder
in
the
state.
If
the
declaration
9
of
value
form
requires
or
provides
for
the
inclusion
of
the
10
social
security
number
or
federal
tax
identification
number
of
11
a
seller
or
buyer,
the
department
shall
provide
that
the
social
12
security
number
or
federal
tax
identification
number
remains
13
confidential
and
cannot
be
obtained
by
public
examination.
14
Sec.
61.
Section
441.21,
subsection
1,
paragraph
b,
15
subparagraph
(1),
Code
2026,
is
amended
to
read
as
follows:
16
(1)
The
actual
value
of
all
property
subject
to
assessment
17
and
taxation
shall
be
the
fair
and
reasonable
market
value
of
18
such
property
except
as
otherwise
provided
in
this
section
.
19
“Market
value”
is
defined
as
the
fair
and
reasonable
exchange
20
in
the
year
in
which
the
property
is
listed
and
valued
between
21
a
willing
buyer
and
a
willing
seller,
neither
being
under
any
22
compulsion
to
buy
or
sell
and
each
being
familiar
with
all
23
the
facts
relating
to
the
particular
property.
Sale
prices
24
of
the
property
or
comparable
property
in
normal
transactions
25
reflecting
market
value,
and
the
probable
availability
26
or
unavailability
of
persons
interested
in
purchasing
the
27
property,
shall
be
taken
into
consideration
in
arriving
at
28
its
market
value.
In
arriving
at
market
value,
sale
prices
29
of
property
in
abnormal
transactions
not
reflecting
market
30
value
shall
not
be
taken
into
account,
or
shall
be
adjusted
to
31
eliminate
the
effect
of
factors
which
distort
market
value,
32
including
but
not
limited
to
built-to-suit
construction,
33
sale-leaseback
transactions,
leased
fee
sales,
sales
to
34
immediate
family
of
the
seller
between
related
parties
,
35
-30-
LSB
6158HV
(4)
91
md/jh
30/
57
H.F.
2745
foreclosure
or
other
forced
sales,
contract
sales,
discounted
1
purchase
transactions
or
purchase
of
adjoining
land
or
other
2
land
to
be
operated
as
a
unit.
3
Sec.
62.
RETROACTIVE
APPLICABILITY.
This
division
of
this
4
Act
applies
retroactively
to
assessment
years
beginning
on
or
5
after
January
1,
2026.
6
DIVISION
XI
7
LOCAL
GOVERNMENT
BUDGET
STATEMENTS
8
Sec.
63.
Section
24.2A,
subsection
1,
paragraph
c,
Code
9
2026,
is
amended
by
striking
the
paragraph.
10
Sec.
64.
Section
24.2A,
subsection
1,
paragraph
d,
Code
11
2026,
is
amended
to
read
as
follows:
12
d.
“Political
subdivision”
means
a
school
district,
a
13
county,
or
a
city.
In
addition,
for
purposes
of
the
statements
14
required
under
subsection
2,
paragraph
“b”
,
only,
all
15
certifying
boards
that
are
not
a
political
subdivision
shall
be
16
considered
a
single
political
subdivision
and
identified
under
17
a
designation
of
special
taxing
districts
on
such
statements.
18
Sec.
65.
Section
24.2A,
subsection
2,
paragraph
a,
Code
19
2026,
is
amended
to
read
as
follows:
20
a.
On
or
before
4:00
p.m.
on
March
5
of
each
year,
each
21
political
subdivision
certifying
board
shall
file
with
the
22
department
of
management
a
report
containing
all
necessary
23
information
for
the
department
of
management
to
compile
and
24
calculate
amounts
required
to
be
included
in
the
statements
25
mailed
under
paragraph
“b”
or
provided
under
paragraph
“c”
.
If
26
a
county
or
city
certifying
board,
except
a
school
district,
27
fails
to
file
all
necessary
information
with
the
department
of
28
management
by
4:00
p.m.
on
March
5,
taxes
levied
by
the
county
29
or
city
certifying
board
shall
be
limited
to
the
prior
year’s
30
budget
amount.
31
Sec.
66.
Section
24.2A,
subsection
2,
paragraph
b,
Code
32
2026,
is
amended
by
striking
the
paragraph
and
inserting
in
33
lieu
thereof
the
following:
34
b.
Not
later
than
March
15,
the
county
auditor,
using
35
-31-
LSB
6158HV
(4)
91
md/jh
31/
57
H.F.
2745
information
compiled
and
calculated
by
the
department
of
1
management
under
paragraph
“a”
,
shall
send
to
each
property
2
owner
or
taxpayer
within
the
county
by
regular
mail
or
post
3
under
paragraph
“c”
a
statement,
identified
as
not
being
a
4
property
tax
bill
and
indicating
the
approximate
date
when
5
a
property
tax
bill
will
be
delivered,
but
containing
a
6
minimum
of
all
of
the
following,
including
the
information
7
in
subparagraphs
(3),
(4),
(5),
(7),
and
(8)
for
each
of
the
8
political
subdivisions
comprising
the
owner’s
or
taxpayer’s
9
taxing
district:
10
(1)
The
address,
property
description,
parcel
11
identification
number,
actual
value,
and
taxable
value
of
the
12
owner’s
or
taxpayer’s
property.
13
(2)
The
classification
of
the
owner’s
or
taxpayer’s
14
property,
including
identification
of
all
assessment
15
limitations
under
section
441.21,
and
identification
of
each
16
property
tax
exemption
or
credit
being
received
by
the
owner
17
or
taxpayer
for
the
property
for
the
assessment
year
and
the
18
immediately
preceding
assessment
year.
19
(3)
The
sum
of
the
current
fiscal
year’s
actual
property
20
taxes
certified
for
levy
for
all
of
the
political
subdivision’s
21
levies
on
the
owner’s
or
taxpayer’s
property,
the
percentage
22
that
such
amount
represents
of
the
total
taxes
due
on
the
23
property,
and
the
allocation
of
such
amounts
to
specified
24
categories
of
the
political
subdivision’s
services
and
25
activities.
26
(4)
The
combined
amount
of
the
proposed
property
tax
dollars
27
to
be
certified
for
all
of
the
political
subdivision’s
levies
28
for
the
budget
year
on
the
owner’s
or
taxpayer’s
property,
29
the
percentage
that
such
amount
represents
of
the
proposed
30
total
taxes
due
on
the
property,
the
percentage
increase
of
31
such
amount
from
the
current
fiscal
year
and
the
potential
32
reasons
for
any
increases,
and
the
allocation
of
such
amounts
33
to
specified
categories
of
the
political
subdivision’s
services
34
and
activities,
including
that
portion
of
such
amount
subject
35
-32-
LSB
6158HV
(4)
91
md/jh
32/
57
H.F.
2745
to
the
limitation
under
section
444.25.
1
(5)
Tax
amounts
provided
under
subparagraphs
(3)
and
(4)
2
as
a
per
month
amount
and
a
percentage
change
in
the
per
month
3
amount
between
the
current
fiscal
year
and
the
budget
year.
4
(6)
A
comparison
of
the
combined
amount
of
property
taxes
5
due
on
the
owner’s
or
taxpayer’s
property
for
all
political
6
subdivisions
for
the
current
fiscal
year
and
the
combined
7
proposed
amount
of
property
taxes
due
on
the
owner’s
or
8
taxpayer’s
property
for
all
political
subdivisions
for
the
9
budget
year,
including
the
percentage
in
change
in
such
10
amounts.
11
(7)
The
date,
time,
and
location
of
the
political
12
subdivision’s
public
hearing
under
subsection
4,
including
13
a
statement
of
the
owner
or
taxpayer’s
ability
to
provide
14
feedback
at
the
public
hearing
and
protest
property
15
assessments.
16
(8)
Information
on
how
to
access
on
the
political
17
subdivision’s
internet
site
the
political
subdivision’s
18
statements
under
this
section
and
other
budget
documents
for
19
prior
fiscal
years.
20
(9)
A
link
to
the
department
of
management’s
internet
site
21
where
the
property
owner
or
taxpayer
may
view
an
example
of
the
22
statement
and
a
brief
explanation
of
the
information
included
23
on
the
statement.
24
Sec.
67.
Section
24.2A,
subsection
2,
Code
2026,
is
amended
25
by
adding
the
following
new
paragraph:
26
NEW
PARAGRAPH
.
c.
For
budgets
for
fiscal
years
beginning
27
on
or
after
July
1,
2027,
statements
under
paragraph
“b”
,
in
28
lieu
of
regular
mail,
may
be
provided
by
posting
the
statement
29
not
later
than
March
15
on
the
political
subdivision’s
30
internet
site
for
public
viewing
and
shall
be
maintained
on
31
the
political
subdivision’s
internet
site
with
all
such
prior
32
year
statements.
Additionally,
if
the
political
subdivision
33
maintains
a
social
media
account
on
one
or
more
social
media
34
applications,
the
statement
or
an
electronic
link
to
the
35
-33-
LSB
6158HV
(4)
91
md/jh
33/
57
H.F.
2745
statement
shall
be
posted
on
each
such
account
on
a
date
no
1
later
than
March
15.
2
Sec.
68.
Section
24.2A,
subsection
3,
Code
2026,
is
amended
3
to
read
as
follows:
4
3.
The
department
of
management
shall
prescribe
the
form
5
for
the
report
required
under
subsection
2
,
paragraph
“a”
;
6
following
consultation
with
the
Iowa
league
of
cities
and
the
7
Iowa
state
association
of
counties
,
the
statements
required
to
8
be
mailed
under
subsection
2
,
paragraph
“b”
,
or
provided
under
9
subsection
2,
paragraph
“c”
;
and
the
public
hearing
notice
10
required
under
subsection
4
,
paragraph
“b”
.
The
statements
11
required
under
subsection
2,
paragraph
“b”
,
shall
be
clear,
12
concise,
written
in
plain
language,
and
may
be
presented
13
using
tables,
written
narrative,
and
graphic
representations
14
and
shall
contain
the
internet
site,
mailing
address,
and
a
15
telephone
number
for
each
political
subdivision
that
owners
16
and
taxpayers
may
call
if
they
have
questions
related
to
the
17
statement.
18
Sec.
69.
Section
24.2A,
subsection
4,
paragraph
b,
19
subparagraph
(4),
subparagraph
division
(a),
Code
2026,
is
20
amended
to
read
as
follows:
21
(a)
Notice
of
the
public
hearing
was
provided
to
each
22
property
owner
and
each
taxpayer
within
the
political
23
subdivision
in
statements
required
under
subsection
2
,
24
paragraph
“b”
.
25
Sec.
70.
Section
24.3,
unnumbered
paragraph
1,
Code
2026,
26
is
amended
to
read
as
follows:
27
A
municipality
shall
not
certify
or
levy
in
any
fiscal
year
28
any
tax
on
property
subject
to
taxation
unless
and
until
the
29
following
estimates
have
been
made,
filed,
and
considered,
30
and
for
school
districts,
the
individual
statements
have
been
31
mailed
or
posted,
as
applicable,
and
public
hearings
held,
as
32
provided
in
this
chapter
:
33
Sec.
71.
Section
331.434,
subsection
3,
Code
2026,
is
34
amended
to
read
as
follows:
35
-34-
LSB
6158HV
(4)
91
md/jh
34/
57
H.F.
2745
3.
Following,
and
not
until,
the
requirements
of
section
1
24.2A
are
completed,
the
board
shall
set
a
time
and
place
for
2
a
public
hearing
on
the
budget
before
the
final
certification
3
date
and
shall
publish
notice
of
the
hearing
not
less
than
4
ten
nor
more
than
twenty
days
prior
to
the
hearing
in
the
5
county
newspapers
selected
under
chapter
349
.
A
summary
of
6
the
proposed
budget
and
a
description
of
the
procedure
for
7
protesting
the
county
budget
under
section
331.436
,
in
the
form
8
prescribed
by
the
director
of
the
department
of
management,
9
shall
be
included
in
the
notice.
Proof
of
publication
of
10
the
notice
under
this
subsection
3
shall
be
filed
with
and
11
preserved
by
the
county
auditor.
A
levy
is
not
valid
unless
12
and
until
the
notice
is
published
and
individual
statements
13
under
section
24.2A
are
mailed
or
posted
.
The
department
of
14
management
shall
prescribe
the
form
for
the
public
hearing
15
notice
for
use
by
counties.
16
Sec.
72.
Section
331.435,
subsection
2,
Code
2026,
is
17
amended
to
read
as
follows:
18
2.
The
board
shall
prepare
and
adopt
a
budget
amendment
in
19
the
same
manner
as
the
original
budget
as
provided
in
section
20
331.434
,
but
excluding
the
requirements
for
mailing
individual
21
statements
under
section
24.2A
,
and
the
amendment
is
subject
22
to
protest
as
provided
in
section
331.436
,
except
that
the
23
director
of
the
department
of
management
may
by
rule
provide
24
that
amendments
of
certain
types
or
up
to
certain
amounts
may
25
be
made
without
public
hearing
and
without
being
subject
to
26
protest.
A
county
budget
for
the
ensuing
fiscal
year
shall
be
27
amended
by
May
31
to
allow
time
for
a
protest
hearing
to
be
28
held
and
a
decision
rendered
before
June
30.
An
amendment
of
29
a
budget
after
May
31
which
is
properly
appealed
but
without
30
adequate
time
for
hearing
and
decision
before
June
30
is
void.
31
Sec.
73.
Section
384.17,
Code
2026,
is
amended
to
read
as
32
follows:
33
384.17
Levy
by
county.
34
At
the
time
required
by
law,
the
county
board
of
supervisors
35
-35-
LSB
6158HV
(4)
91
md/jh
35/
57
H.F.
2745
shall
levy
the
taxes
necessary
for
each
city
fund
for
the
1
following
fiscal
year.
The
levy
must
be
as
shown
in
the
2
adopted
city
budget
and
as
certified
by
the
clerk,
subject
to
3
any
changes
made
after
a
protest
hearing,
and
any
additional
4
tax
rates
approved
at
a
city
election.
A
city
levy
is
not
valid
5
until
proof
of
publication
or
posting
of
notice
of
a
budget
6
hearing
under
section
384.16,
subsection
3
,
is
filed
with
the
7
county
auditor
and
individual
statements
are
mailed
or
posted
8
under
section
24.2A
.
9
Sec.
74.
Section
384.18,
subsection
2,
Code
2026,
is
amended
10
to
read
as
follows:
11
2.
A
budget
amendment
must
be
prepared
and
adopted
in
the
12
same
manner
as
the
original
budget,
as
provided
in
section
13
384.16
,
excluding
the
requirement
for
the
mailing
of
individual
14
statements
under
section
24.2A
,
and
is
subject
to
protest
as
15
provided
in
section
384.19
,
except
that
the
committee
may
by
16
rule
provide
that
amendments
of
certain
types
or
up
to
certain
17
amounts
may
be
made
without
public
hearing
and
without
being
18
subject
to
protest.
A
city
budget
shall
be
amended
by
May
19
31
of
the
current
fiscal
year
to
allow
time
for
a
protest
20
hearing
to
be
held
and
a
decision
rendered
before
June
30.
The
21
amendment
of
a
budget
after
May
31,
which
is
properly
appealed
22
but
without
adequate
time
for
hearing
and
decision
before
June
23
30
is
void.
24
Sec.
75.
IMPLEMENTATION
OF
DIVISION
OF
ACT.
Section
25B.2,
25
subsection
3,
shall
not
apply
to
this
division
of
this
Act.
26
Sec.
76.
APPLICABILITY.
This
division
of
this
Act
applies
27
to
political
subdivision
budgets
for
fiscal
years
beginning
on
28
or
after
July
1,
2027.
29
DIVISION
XII
30
DIVISION
OF
REVENUE
——
DATA
CENTERS
31
Sec.
77.
Section
403.19,
subsection
2,
paragraph
a,
Code
32
2026,
is
amended
to
read
as
follows:
33
a.
That
portion
of
the
taxes
each
year
in
excess
of
such
34
amount
shall
be
allocated
to
and
when
collected
be
paid
into
35
-36-
LSB
6158HV
(4)
91
md/jh
36/
57
H.F.
2745
a
special
fund
of
the
municipality
to
pay
the
principal
of
1
and
interest
on
loans,
moneys
advanced
to,
or
indebtedness,
2
whether
funded,
refunded,
assumed,
or
otherwise,
including
3
bonds
issued
under
the
authority
of
section
403.9,
subsection
4
1
,
incurred
by
the
municipality
to
finance
or
refinance,
in
5
whole
or
in
part,
an
urban
renewal
project
within
the
area,
6
and
to
provide
assistance
for
low
and
moderate
income
family
7
housing
as
provided
in
section
403.22
.
However,
except
8
as
provided
in
paragraph
“b”
,
taxes
for
the
regular
and
9
voter-approved
physical
plant
and
equipment
levy
of
a
school
10
district
imposed
pursuant
to
section
298.2
,
foundation
property
11
taxes
of
a
school
district
imposed
under
section
257.3
levied
12
against
property
that
is
a
qualified
data
center
or
upon
13
which
a
qualified
data
center
is
operated,
and
taxes
for
the
14
instructional
support
program
of
a
school
district
imposed
15
pursuant
to
section
257.19
,
taxes
for
the
payment
of
bonds
16
and
interest
of
each
taxing
district,
and
taxes
imposed
under
17
section
346.27,
subsection
22
,
related
to
joint
county-city
18
buildings
shall
be
collected
against
all
taxable
property
19
within
the
taxing
district
without
limitation
by
the
provisions
20
of
this
subsection
.
For
purposes
of
this
paragraph,
“qualified
21
data
center”
means
a
data
center,
as
defined
in
section
423.3,
22
subsection
95,
for
which
site
preparation
activities,
as
23
defined
in
section
423.3,
subsection
95,
began
on
or
after
the
24
effective
date
of
this
division
of
this
Act.
25
Sec.
78.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
26
deemed
of
immediate
importance,
takes
effect
upon
enactment.
27
Sec.
79.
APPLICABILITY.
This
division
of
this
Act
applies
28
to
property
taxes
due
and
payable
in
fiscal
years
beginning
on
29
or
after
July
1,
2027.
30
DIVISION
XIII
31
ELECTION
DATES
——
BONDS
32
Sec.
80.
Section
39.2,
subsection
4,
paragraph
d,
Code
2026,
33
is
amended
to
read
as
follows:
34
d.
For
any
political
subdivision
of
this
state,
if
the
35
-37-
LSB
6158HV
(4)
91
md/jh
37/
57
H.F.
2745
special
election
is
in
whole
or
in
part
for
the
question
of
1
issuing
bonds
or
other
indebtedness,
the
first
Tuesday
after
2
the
first
Monday
in
June
or
the
first
Tuesday
after
the
first
3
Monday
in
November.
However,
a
political
subdivision
shall
4
not
hold
an
election
on
the
question
of
issuing
bonds
or
other
5
indebtedness
on
two
consecutive
election
dates
authorized
under
6
this
paragraph.
7
DIVISION
XIV
8
EMERGENCY
MEDICAL
SERVICES
LEVY
9
Sec.
81.
Section
422D.1,
subsection
1,
paragraph
a,
10
subparagraph
(2),
Code
2026,
is
amended
to
read
as
follows:
11
(2)
(a)
An
For
fiscal
years
beginning
before
July
1,
2027,
12
an
ad
valorem
property
tax
not
to
exceed
seventy-five
cents
per
13
one
thousand
dollars
of
assessed
value
on
all
taxable
property
14
within
the
county.
15
(b)
For
fiscal
years
beginning
on
or
after
July
1,
2027,
16
an
ad
valorem
property
tax
not
to
exceed
one
dollar
and
fifty
17
cents
per
one
thousand
dollars
of
assessed
value
on
all
taxable
18
property
within
the
county.
However,
for
counties
authorized
19
to
impose
the
ad
valorem
property
tax
under
this
subparagraph
20
for
the
fiscal
year
beginning
July
1,
2026,
the
maximum
levy
21
rate
for
such
county
shall
not
exceed
a
rate
of
seventy-five
22
cents
per
one
thousand
dollars
of
assessed
value
unless
a
rate
23
in
excess
thereof,
not
to
exceed
one
dollar
and
fifty
cents
24
per
one
thousand
dollars
of
assessed
value,
is
approved
at
an
25
election
held
on
or
after
July
1,
2026.
26
DIVISION
XV
27
UTILITY
REPLACEMENT
TAX
TASK
FORCE
28
Sec.
82.
Section
437A.15,
subsection
7,
paragraph
b,
Code
29
2026,
is
amended
to
read
as
follows:
30
b.
The
task
force
shall
study
the
accuracy
of
the
taxes
31
imposed
under
this
chapter
and
chapter
437B,
ways
to
modernize
32
the
administration
of
such
taxes,
methods
of
simplifying
33
administration
of
the
replacement
taxes,
elimination
of
34
property
taxes
imposed
under
this
chapter
or
chapter
437B,
35
-38-
LSB
6158HV
(4)
91
md/jh
38/
57
H.F.
2745
simplification
of
thresholds
for
replacement
tax
rate
1
adjustments
while
retaining
tax
stability,
the
effects
of
2
the
replacement
such
taxes
under
this
chapter
and
chapter
3
437B
on
local
taxing
authorities,
local
taxing
districts,
4
consumers,
and
taxpayers
through
January
1,
2024
December
31,
5
2026,
including
ways
to
maintain
continuity
for
local
taxing
6
districts
and
consumers
and
ways
to
provide
a
competitive
7
and
equitable
tax
environment
for
taxpayers
.
If
the
task
8
force
recommends
modifications
to
the
replacement
tax
that
9
will
further
the
purposes
of
tax
neutrality
for
local
taxing
10
authorities,
local
taxing
districts,
taxpayers,
and
consumers,
11
consistent
with
the
stated
purposes
of
this
chapter
taxes
,
the
12
department
of
management
shall
transmit
those
recommendations
13
to
the
general
assembly.
14
Sec.
83.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
15
deemed
of
immediate
importance,
takes
effect
upon
enactment.
16
DIVISION
XVI
17
SCHOOL
DISTRICT
UNSPENT
BALANCES
——
ON-TIME
FUNDING
AND
18
MODIFIED
SUPPLEMENTAL
AMOUNTS
19
Sec.
84.
Section
257.7,
Code
2026,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
3.
Unspent
balances.
For
school
budget
22
years
beginning
on
or
after
July
1,
2026,
a
school
district’s
23
actual
unspent
balance
from
the
preceding
year
used
to
24
calculate
the
authorized
budget
under
subsection
1
shall
25
not
exceed
an
amount
equal
to
thirty-five
percent
of
the
26
school
district’s
authorized
expenditures
for
the
budget
year
27
immediately
preceding
the
base
year
unless
a
greater
amount
28
is
authorized
by
the
school
budget
review
committee
based
on
29
one
or
more
grounds
authorized
for
the
approval
of
a
modified
30
supplemental
amount
under
section
257.31.
31
Sec.
85.
Section
257.13,
Code
2026,
is
amended
to
read
as
32
follows:
33
257.13
On-time
funding
budget
adjustment.
34
1.
a.
For
the
school
budget
year
beginning
July
1,
2001,
35
-39-
LSB
6158HV
(4)
91
md/jh
39/
57
H.F.
2745
and
succeeding
budget
years
beginning
before
July
1,
2026
,
if
a
1
district’s
actual
enrollment
for
the
budget
year,
determined
2
under
section
257.6
,
is
greater
than
its
budget
enrollment
for
3
the
budget
year,
the
district
shall
be
eligible
to
receive
an
4
on-time
funding
budget
adjustment.
The
adjustment
shall
be
in
5
an
amount
equal
to
the
difference
between
the
actual
enrollment
6
for
the
budget
year
and
the
budget
enrollment
for
the
budget
7
year,
multiplied
by
the
district
cost
per
pupil.
8
2.
b.
The
board
of
directors
of
a
school
district
that
9
wishes
to
receive
an
on-time
funding
budget
adjustment
under
10
this
subsection
shall
adopt
a
resolution
to
receive
the
11
adjustment
and
notify
the
school
budget
review
committee
12
annually,
but
not
earlier
than
November
1,
as
determined
by
the
13
department
of
education.
The
school
budget
review
committee
14
shall
establish
a
modified
supplemental
amount
pursuant
to
15
subsection
1
paragraph
“a”
.
16
2.
a.
For
the
school
budget
years
beginning
on
or
after
17
July
1,
2026,
if
a
district’s
actual
enrollment
for
the
budget
18
year,
determined
under
section
257.6,
is
greater
than
its
19
budget
enrollment
for
the
budget
year,
the
district
may
request
20
an
on-time
budget
adjustment.
The
adjustment
shall
not
exceed
21
an
amount
equal
to
the
difference
between
the
actual
enrollment
22
for
the
budget
year
and
the
budget
enrollment
for
the
budget
23
year,
multiplied
by
the
district
cost
per
pupil.
24
b.
To
request
an
on-time
budget
adjustment
under
this
25
subsection,
the
board
of
directors
of
a
school
district
shall
26
adopt
a
resolution
to
receive
the
adjustment
and
notify
the
27
school
budget
review
committee
on
or
before
a
date
established
28
by
the
committee.
The
school
budget
review
committee
may
29
establish
a
modified
supplemental
amount
pursuant
to
paragraph
30
“a”
.
31
3.
If
the
board
of
directors
of
a
school
district
determines
32
that
a
need
exists
for
additional
funds
exceeding
the
on-time
33
funding
budget
adjustment
pursuant
to
this
section
,
a
request
34
for
a
modified
supplemental
amount
based
upon
increased
35
-40-
LSB
6158HV
(4)
91
md/jh
40/
57
H.F.
2745
enrollment
may
be
submitted
to
the
school
budget
review
1
committee
as
provided
in
section
257.31
.
2
Sec.
86.
NEW
SECTION
.
279.63A
Unspent
balance
——
policy.
3
1.
The
board
of
directors
of
each
school
district
shall
4
establish
a
policy
that
defines
a
targeted
range
and
maximum
5
amount
of
unspent
balance
of
authorized
expenditures,
6
determined
by
a
percent
of
authorized
expenditures
under
7
section
257.7
or
other
methodology
specified
in
the
policy.
8
The
policy
shall
also
state
the
date
the
policy
was
adopted
9
and
the
date
the
policy
was
most
recently
reviewed
or
revised
10
under
subsection
2.
The
targeted
range
and
maximum
amount
11
established
in
the
policy
shall
be
made
with
the
intent
to
12
equalize
educational
opportunity,
provide
a
good
education
13
for
all
the
children
of
the
school
district,
provide
property
14
tax
relief,
decrease
the
percentage
of
school
costs
paid
from
15
property
taxes,
and
to
provide
reasonable
control
of
school
16
costs.
17
2.
Targeted
ranges
and
maximum
amounts
defined
in
the
policy
18
under
subsection
1
shall
be
reviewed
annually
by
the
board
of
19
directors
and
such
review
shall
be
entered
in
the
minutes
of
20
the
board
and
approved
revisions
shall
be
made
to
the
policy.
21
Sec.
87.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
22
deemed
of
immediate
importance,
takes
effect
upon
enactment.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
state
and
local
government
taxes,
27
budgets,
and
authority,
by
modifying
provisions
relating
to
the
28
assessment
and
taxation
of
property,
funding
from
the
secure
29
an
advanced
vision
for
education
fund,
urban
renewal
areas,
30
establishing
a
program
for
certain
first-time
homebuyers,
and
31
establishing
a
local
government
efficiency
grant
fund.
32
DIVISION
I
——
PROPERTY
TAX
REVENUE
LIMITATIONS
——
BOND
33
REVENUE
USE
LIMITATIONS.
Under
the
bill,
new
Code
section
34
24.35
provides
that
for
governmental
entity
budgets
certified
35
-41-
LSB
6158HV
(4)
91
md/jh
41/
57
H.F.
2745
for
budget
years
beginning
on
or
after
July
1,
2027,
proposed
1
unassigned
reserve
funds
identified
within
a
governmental
2
entity’s
general
fund
shall
not
exceed
an
amount
equal
to
35
3
percent
of
the
budgeted
expenditures
from
the
governmental
4
entity’s
general
fund
for
the
prior
fiscal
year
before
any
5
budgeted
transfers
from
such
general
fund.
If
the
governmental
6
entity’s
budget
does
not
comply
with
the
requirement,
the
7
department
of
management
shall
not
certify
the
governmental
8
entity’s
taxes
back
to
the
county
auditor
under
Code
section
9
24.17
and
the
governmental
entity
shall
remedy
the
violation
10
and
recertify
the
budget.
For
purposes
of
this
provision,
11
the
bill
defines
“governmental
entity”
to
mean
any
unit
12
of
government
or
other
public
body
or
public
corporation,
13
including
any
intergovernmental
entity,
that
has
the
power
to
14
impose
or
certify
a
property
tax
levy,
but
excludes
school
15
districts.
The
bill
strikes
a
provision
in
Code
section
176A.8
16
relating
to
unexpended
funds
of
county
agricultural
extensions.
17
As
part
of
conducting
an
audit
of
a
governmental
subdivision
18
under
Code
chapter
11
for
fiscal
years
beginning
on
or
after
19
July
1,
2027,
an
examination
of
the
governmental
subdivision’s
20
compliance
with
new
Code
section
24.35
shall
be
performed,
21
including
verification
of
the
circumstances
resulting
in
actual
22
reserve
funds
exceeding
the
specified
limits.
23
The
bill
enacts
new
Code
section
444.25,
which
establishes
a
24
maximum
aggregate
amount
of
property
tax
dollars
that
may
be
25
certified
for
levy
among
all
property
tax
levies
imposed
by
a
26
governmental
entity
other
than
a
school
district,
excluding
27
debt
service
levies.
For
the
budget
year
beginning
July
1,
28
2027,
and
each
budget
year
thereafter,
the
maximum
aggregate
29
amount
of
property
tax
dollars
that
may
be
certified
for
30
levy
among
all
property
tax
levies
imposed
by
a
governmental
31
entity
against
property
that
is
not
new
valuation,
as
defined
32
in
the
bill,
shall
not
exceed
an
amount
equal
to
the
sum
of
33
102
percent
of
the
aggregate
amount
of
property
tax
dollars
34
certified
for
levy
by
the
governmental
entity
among
all
35
-42-
LSB
6158HV
(4)
91
md/jh
42/
57
H.F.
2745
property
tax
levies
imposed
by
the
governmental
entity
for
the
1
preceding
fiscal
year
for
each
of
the
governmental
entity’s
2
property
tax
levies
for
the
budget
year.
If
the
budget
3
year
includes
a
voter-approved
property
tax
levy
that
was
4
not
approved
for
imposition
in
the
preceding
fiscal
year,
5
the
maximum
aggregate
amount
of
property
tax
dollars
for
6
the
governmental
entity
for
the
budget
year
is
increased
by
7
the
amount
of
the
voter-approved
property
tax
levy
approved
8
at
election
for
the
budget
year.
If
a
governmental
entity
9
certifies
a
budget
that
violates
new
Code
section
444.25,
the
10
department
of
management
shall
reduce
each
of
the
applicable
11
governmental
entity’s
property
tax
levies
on
a
pro
rata
basis
12
so
that
the
governmental
entity
is
in
compliance.
New
Code
13
section
444.25
does
not
remove
or
otherwise
affect
property
tax
14
limitations,
including
levy
rate
and
use
limitations,
otherwise
15
provided
by
law
for
any
property
tax
levy
of
the
governmental
16
entity.
The
authority
of
the
state
appeal
board
under
Code
17
section
24.48
to
suspend
property
tax
levy
limitations
does
not
18
apply
to
the
limitations
of
new
Code
section
444.25.
19
The
bill
also
enacts
new
Code
section
444.26,
which
20
provides
that,
on
or
after
July
1,
2026,
a
governmental
21
entity,
as
defined
in
the
bill,
shall
not
issue
bonds
or
22
other
indebtedness
payable
from
an
ad
valorem
property
tax
23
levy
for
the
purpose
of
funding
the
general
operations
of
the
24
governmental
entity
or
otherwise
use
proceeds
from
the
sale
25
of
bonds
or
issuance
of
other
indebtedness
to
fund
general
26
operations.
The
bill
defines
“general
operations”
to
mean
27
services
or
activities
generally
funded
from
the
governmental
28
entity’s
general
fund,
which
are
necessary
for
the
operation
29
of
the
governmental
entity,
including
salaries
and
benefits,
30
or
which
are
for
the
health
and
welfare
of
the
governmental
31
entity’s
citizens
or
primarily
intended
to
benefit
all
32
residents
of
the
governmental
entity,
but
excluding
services
33
financed
by
statutory
funds
other
than
a
debt
service
fund.
34
The
department
of
management,
following
consultation
with
the
35
-43-
LSB
6158HV
(4)
91
md/jh
43/
57
H.F.
2745
city
finance
committee
and
the
county
finance
committee,
may
1
adopt
rules
under
Code
chapter
17A
to
implement
the
new
Code
2
section
governing
funding
of
general
operations.
3
DIVISION
II
——
COMMERCIAL
AND
INDUSTRIAL
PROPERTY
ASSESSMENT
4
LIMITATIONS.
Current
Code
section
441.21
imposes
an
assessment
5
limitation
(rollback)
on
commercial
property,
industrial
6
property,
and
property
valued
by
the
department
of
revenue
7
under
Code
chapter
434
(railway
company
property).
For
8
valuations
established
for
the
assessment
year
beginning
9
January
1,
2022,
and
each
assessment
year
thereafter,
the
10
portion
of
actual
value
at
which
each
property
unit
of
11
commercial
property
shall
be
assessed
shall
be
the
sum
of
12
the
following:
(1)
an
amount
equal
to
the
product
of
the
13
assessment
limitation
percentage
applicable
to
residential
14
property
multiplied
by
the
actual
value
of
the
property
that
15
exceeds
$0
but
does
not
exceed
$150,000;
and
(2)
an
amount
16
equal
to
90
percent
of
the
actual
value
of
the
property
for
17
that
assessment
year
that
exceeds
$150,000.
The
limitation,
18
by
operation
of
law,
applies
to
the
assessed
value
of
railway
19
company
property.
The
bill
increases
the
amount
of
value
20
subject
to
the
residential
assessment
limitation
rates
from
21
$150,000
to
$350,000
for
each
property
unit.
The
sections
of
22
the
division
of
the
bill
amending
Code
section
441.21(5)(b)(2)
23
and
441.21(5)(c)(2)
apply
retroactively
to
assessment
years
24
beginning
on
or
after
January
1,
2026.
For
fiscal
years
25
beginning
on
or
after
July
1,
2027,
the
bill
eliminates
the
26
$125
million
annual
appropriation
used
under
Code
section
27
441.21(5)(e)
for
payments
to
replace
property
taxes
due
to
the
28
application
of
the
residential
property
assessment
limitation
29
to
certain
portions
of
commercial
and
industrial
property
30
valuations.
31
DIVISION
III
——
HOMESTEAD
PROPERTY
TAX
EXEMPTION.
The
32
bill
establishes
a
property
tax
exemption
for
residential
33
property
that
is
receiving
a
homestead
property
tax
credit.
34
For
assessment
years
beginning
on
or
after
January
1,
2026,
35
-44-
LSB
6158HV
(4)
91
md/jh
44/
57
H.F.
2745
a
property
tax
exemption
is
allowed
on
each
such
property
in
1
addition
to
any
exemption
or
credit
for
such
property
under
2
any
other
provision
of
law.
The
exemption
is
10
percent
of
3
the
taxable
value
of
the
property
or
$25,000
in
taxable
value,
4
whichever
is
less.
However,
the
exemption
shall
not
apply
to
a
5
property
tax
imposed
by
a
school
district.
6
Code
section
25B.7
provides
that
for
a
property
tax
credit
7
or
exemption
enacted
on
or
after
January
1,
1997,
if
a
state
8
appropriation
made
to
fund
the
credit
or
exemption
is
not
9
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
10
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
11
that
portion
of
the
credit
or
exemption
estimated
by
the
12
department
of
revenue
to
be
funded
by
the
state
appropriation.
13
The
bill
makes
Code
section
25B.7
inapplicable
to
the
exemption
14
established
in
this
division.
15
DIVISION
IV
——
SECURE
AN
ADVANCED
VISION
FOR
EDUCATION
FUND
16
——
EQUITY
TRANSFER
PERCENTAGE
——
FUTURE
REPEAL.
Prior
to
17
allocation
of
moneys
available
in
the
secure
an
advanced
vision
18
for
education
fund
to
school
districts
on
a
per-pupil
basis,
19
certain
amounts
are
calculated
and
allocated
to
other
funds.
20
Code
section
423F.2
establishes
a
calculation
for
an
equity
21
transfer
percentage
that
is
used,
in
part,
to
determine
amounts
22
distributed
and
credited
to
the
foundation
base
supplement
23
fund
and
the
property
tax
equity
and
relief
fund.
For
fiscal
24
years
beginning
on
or
after
July
1,
2026,
the
bill
eliminates
25
the
calculation
of
the
equity
transfer
percentage
based
on
26
increases
in
the
amount
in
the
secure
an
advanced
vision
for
27
education
fund
and
instead
specifies
that
the
equity
transfer
28
percentage
for
the
fiscal
year
beginning
July
1,
2026,
is
10
29
percent;
for
the
fiscal
year
beginning
July
1,
2027,
is
12.5
30
percent;
for
the
fiscal
year
beginning
July
1,
2028,
is
15
31
percent;
for
the
fiscal
year
beginning
July
1,
2029,
is
17.5
32
percent;
for
the
fiscal
year
beginning
July
1,
2030,
is
20
33
percent;
for
the
fiscal
year
beginning
July
1,
2031,
is
22.5
34
percent;
for
the
fiscal
year
beginning
July
1,
2032,
is
25
35
-45-
LSB
6158HV
(4)
91
md/jh
45/
57
H.F.
2745
percent;
for
the
fiscal
year
beginning
July
1,
2033,
is
27.5
1
percent;
and
for
the
fiscal
year
beginning
July
1,
2034,
and
2
each
fiscal
year
thereafter,
is
30
percent.
3
The
bill
provides
that
for
amounts
allocated
under
Code
4
section
423F.2
for
fiscal
years
beginning
on
or
after
July
1,
5
2026,
the
department
of
management
shall
adjust
or
reconcile
6
actual
amounts
to
be
received
by
school
districts
in
the
fiscal
7
year
immediately
following
the
fiscal
year
during
which
the
8
revenues
were
collected.
9
Current
law
repeals
Code
chapter
423F
that
establishes
the
10
secure
an
advanced
vision
for
education
fund
and
lowers
the
11
state
sales
and
use
tax
rate
from
6
percent
to
5
percent
on
12
January
1,
2051.
The
bill
extends
that
repeal
and
reduction
13
date
to
January
1,
2071.
14
DIVISION
V
——
PROPERTY
PARCEL
INFORMATION.
The
bill
15
requires
each
county
auditor
to
submit
an
annual
report
not
16
later
than
January
1
to
the
department
of
management
containing
17
parcel-level
property
data,
including
parcel
identification
18
information,
location,
size,
valuation,
classification,
types
19
of
structures
and
improvements,
exemptions,
credits,
and
20
whether
the
parcel
is
subject
to
a
division
of
revenue.
The
21
bill
authorizes
the
department
of
management
to
require
the
22
report
to
include
additional
parcel-level
data
deemed
necessary
23
by
the
director
of
the
department
of
management.
The
bill
24
requires
the
department
of
management
to
prescribe
the
form
and
25
manner
of
submitting
such
annual
report.
26
DIVISION
VI
——
URBAN
RENEWAL.
The
bill
amends
the
definition
27
of
“economic
development”
for
purposes
of
Code
chapter
15
to
28
also
include
the
provision
of
workforce
housing.
29
The
bill
adds
development
policies
that
advance
the
30
development
of
workforce
housing
to
the
list
of
factors
31
required
to
be
considered
by
the
public
body
before
public
32
funds
are
used
for
grants,
loans,
tax
incentives,
or
other
33
financial
assistance
to
private
persons
or
on
behalf
of
private
34
persons
for
economic
development
under
Code
chapter
15.
35
-46-
LSB
6158HV
(4)
91
md/jh
46/
57
H.F.
2745
The
bill
also
defines
“low
and
moderate
income
family
1
housing”
for
Code
chapter
403
to
mean
housing
for
low
2
and
moderate
income
families
and
housing
that
meets
the
3
requirements
of
Code
section
15.353
(workforce
housing).
4
The
bill
also
modifies
the
defined
term
“low
or
moderate
5
income
families”
in
Code
chapter
403
to
“low
and
moderate
6
income
families”
to
align
with
the
terminology
usage
within
the
7
Code
chapter.
8
The
bill
excludes
the
school
district
foundation
property
9
tax
imposed
under
Code
section
257.3
from
the
division
of
10
revenue
under
Code
section
403.19
(tax
increment
financing)
11
if
levied
against
property
located
in
an
incorporated
area
12
upon
which
new
construction
or
renovations
begin
on
or
after
13
the
effective
date
of
this
division
of
the
bill,
unless
such
14
construction
or
renovations
were
approved
and
subject
to
an
15
agreement
adopted
before
January
1,
2026.
The
bill
also
16
excludes
taxes
for
emergency
medical
services
imposed
pursuant
17
to
Code
chapter
357F,
357G,
or
422D
from
the
division
of
18
revenue.
The
bill
prohibits
such
taxes
from
being
divided
and
19
paid
into
the
municipality’s
special
fund
for
the
payment
of
20
urban
renewal
indebtedness
but
instead
requires
the
tax
to
be
21
levied,
collected,
and
paid
to
the
school
district,
emergency
22
medical
services
district,
city
emergency
medical
services
23
district,
or
county
in
the
same
manner
as
all
other
property
24
taxes.
The
exclusions
in
the
bill
apply
to
property
taxes
due
25
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
2027.
26
Under
the
bill,
for
urban
renewal
areas
for
which
an
27
ordinance
providing
for
a
division
of
revenue
is
not
limited
28
in
duration
under
Code
section
403.17(10)
(20
years)
or
Code
29
section
403.22(5)
(10
years),
after
20
years
following
the
30
effective
date
of
this
division
of
the
bill
or
after
20
years
31
from
the
calendar
year
following
the
calendar
year
in
which
32
the
municipality
first
certifies
to
the
county
auditor
the
33
amount
of
any
loans,
advances,
indebtedness,
or
bonds
which
34
qualify
for
payment
from
the
division
of
revenue,
whichever
35
-47-
LSB
6158HV
(4)
91
md/jh
47/
57
H.F.
2745
is
later,
the
amount
of
taxes
that
is
authorized
to
be
paid
1
into
the
municipality’s
urban
renewal
special
fund
shall
not
2
exceed
60
percent
of
the
amount
otherwise
authorized,
but
for
3
the
bill,
and
such
excess
amounts
shall
be
allocated
and
paid
4
to
the
respective
taxing
districts
in
the
same
manner
as
other
5
taxes.
The
municipality
may
exceed
this
limitation
to
the
6
extent
necessary
for
the
payment
of
bonds
or
other
indebtedness
7
incurred
before
the
effective
date
of
this
division
of
the
bill
8
and
this
limitation
does
not
apply
to
divisions
of
revenue
9
established
by
community
colleges
under
Code
chapter
260E
or
by
10
rural
improvement
zones
under
Code
chapter
357H.
11
The
bill
provides
that,
unless
otherwise
limited
in
duration
12
under
Code
section
403.17(10)
(20
years),
an
ordinance
13
providing
for
a
division
of
revenue
adopted
on
or
after
the
14
effective
date
of
this
division
of
the
bill
shall
be
limited
to
15
23
years
from
the
calendar
year
following
the
calendar
year
in
16
which
the
municipality
first
certifies
to
the
county
auditor
17
the
amount
of
any
loans,
advances,
indebtedness,
or
bonds
18
that
qualify
for
payment
from
the
division
of
revenue.
The
19
ordinance
shall
terminate
and
be
of
no
further
force
and
effect
20
following
the
23-year
period.
The
23-year
limitation
does
not
21
apply
to
divisions
of
revenue
established
by
community
colleges
22
under
Code
chapter
260E
or
rural
improvement
zones
under
Code
23
chapter
357H.
24
Under
current
law,
any
urban
renewal
area
established
upon
25
the
determination
that
the
area
is
an
economic
development
26
area,
a
division
of
revenue
(tax
increment
financing)
shall
27
not
be
allowed
for
the
purpose
of
providing
or
aiding
in
28
the
provision
of
public
improvements
related
to
housing
and
29
residential
development,
unless
the
municipality
assures
that
30
the
project
will
include
assistance
for
low
and
moderate
income
31
family
housing,
subject
to
certain
municipality
population
32
thresholds.
The
bill
modifies
such
assistance
requirements
and
33
the
population
thresholds.
34
Current
law
provides
that
for
municipalities
with
a
35
-48-
LSB
6158HV
(4)
91
md/jh
48/
57
H.F.
2745
population
of
5,000
or
less,
the
municipality
need
not
provide
1
any
low
or
moderate
income
family
housing
assistance
if
a
2
housing
needs
assessment
shows
there
is
no
need.
The
bill
3
eliminates
the
housing
needs
assessment
requirement.
4
The
bill
combines
the
two
population
threshold
categories
5
for
municipalities
over
5,000
in
population
and
provides
that
6
the
amount
of
assistance
for
low
and
moderate
income
family
7
housing
shall
be
equal
to
or
greater
than
the
percentage
of
the
8
original
project
cost
that
is
equal
to
the
percentage
of
low
9
and
moderate
income
residents
for
the
county
in
which
the
urban
10
renewal
area
is
located
as
determined
by
the
United
States
11
department
of
housing
and
urban
development
using
section
8
12
guidelines.
The
bill,
however,
establishes
a
maximum
amount
13
of
assistance
that
is
the
lesser
of
20
percent
of
the
original
14
project
cost,
or
$350,000
if
the
municipality
is
a
city
or
15
$300,000
if
the
municipality
is
a
county.
These
changes
apply
16
to
existing
and
newly
established
urban
renewal
areas.
17
The
bill
also
eliminates
the
10-year
limitation
on
the
18
division
of
revenue
for
certain
projects
relating
to
housing
19
and
residential
development
in
urban
renewal
areas
that
20
are
economic
development
areas
for
ordinances
adopted
on
or
21
after
the
effective
date
of
this
division
of
the
bill.
Such
22
ordinances
adopted
on
or
after
the
effective
date
of
this
23
division
of
the
bill
are
subject
to
the
20-year
limitation
for
24
economic
development
areas.
25
This
division
of
the
bill
takes
effect
upon
enactment.
26
DIVISION
VII
——
ASSESSMENT
PROCEDURES.
The
bill
amends
27
Code
section
441.21(3)
by
providing
that
for
assessment
years
28
beginning
on
or
after
January
1,
2027,
if
the
taxpayer’s
29
property
has
increased
in
actual
value
by
10
percent
or
more
30
from
the
immediately
preceding
reassessment
year
or
the
most
31
recent
assessment
year
following
such
reassessment
year
if
32
the
property
was
revalued
or
reassessed
in
that
assessment
33
year,
the
assessor
shall
provide
the
taxpayer
with
a
statement
34
of
the
reasons
for
the
increase
in
actual
value,
information
35
-49-
LSB
6158HV
(4)
91
md/jh
49/
57
H.F.
2745
specifying
the
portion
of
actual
value
increase
attributable
1
to
a
change
in
classification,
revaluation,
new
construction,
2
improvements,
or
renovations
to
the
property,
and
all
3
information
in
any
formula
or
method
used
to
determine
the
4
actual
value.
5
Under
current
Code
section
441.21(3),
the
burden
of
proof
6
is
upon
any
complainant
attacking
a
property
valuation
as
7
excessive,
inadequate,
inequitable,
or
capricious.
However,
8
when
the
complainant
offers
competent
evidence
that
the
market
9
value
of
the
property
is
different
than
the
market
value
10
determined
by
the
assessor,
the
burden
of
proof
thereafter
is
11
upon
the
officials
or
persons
seeking
to
uphold
such
valuation
12
to
be
assessed.
The
bill
modifies
the
burden
of
proof
in
13
certain
circumstances.
For
assessment
years
beginning
on
14
or
after
January
1,
2027,
if
the
taxpayer’s
property
actual
15
value
increased
by
10
percent
or
more
from
the
immediately
16
preceding
reassessment
year
or
the
most
recent
assessment
year
17
following
such
reassessment
year
if
the
property
was
revalued
18
or
reassessed
in
that
assessment
year,
including
an
increase
as
19
the
result
of
an
equalization
order,
and
the
property
did
not
20
change
classification
or
primary
use
and
the
increase
in
actual
21
value
is
not
the
result
of
new
construction,
improvements,
or
22
renovations
to
the
property,
the
actual
value
so
determined
by
23
the
assessor
is
not
presumed
to
be
the
actual
value
and
in
any
24
protest
or
appeal
the
assessor
shall
have
the
burden
of
proof
25
that
the
valuation
is
not
excessive,
inadequate,
inequitable,
26
or
capricious.
27
The
bill
amends
Code
section
441.33
to
provide
that
ex
parte
28
communications
with
board
of
review
members
are
prohibited
in
29
protests
before
the
board.
30
DIVISION
VIII
——
LOCAL
GOVERNMENT
EFFICIENCY
GRANT
PROGRAM.
31
The
bill
establishes
a
local
government
efficiency
grant
fund
32
program
and
fund.
The
bill
appropriates
$10
million
to
the
33
fund.
For
purposes
of
the
program,
“local
government”
means
34
a
county,
city,
township,
or
any
special-purpose
district
or
35
-50-
LSB
6158HV
(4)
91
md/jh
50/
57
H.F.
2745
authority.
The
bill
appropriates
moneys
in
the
fund
to
Iowa
1
state
university
to
provide,
following
approval
by
a
commission
2
provided
for
in
the
bill,
grants
to
local
governments
to
3
assist
in
efforts
to
increase
government
efficiency.
The
4
bill
requires
the
commission
to
adopt
rules
to
establish
and
5
administer
the
grant
program
to
provide
for
the
allocation
of
6
moneys
in
the
fund
in
the
form
of
competitive
grants
to
local
7
governments.
8
DIVISION
IX
——
FIRSTHOME
IOWA
ACCOUNTS.
The
bill
9
establishes
a
FirstHome
Iowa
program,
which
allows
citizens
10
of
the
state
to
invest
money
in
a
public
trust
for
future
11
application
to
the
payment
of
qualified
homebuyer
expenses.
12
A
FirstHome
Iowa
program
trust
is
created
and
the
treasurer
13
of
state
is
the
trustee
of
the
trust.
The
bill
grants
to
14
the
treasurer
of
state
all
powers
necessary
to
carry
out
and
15
effectuate
the
purposes
and
objectives
of
the
trust,
including
16
the
power
to
make
and
enter
into
contracts,
accept
any
moneys
17
for
purposes
of
the
program,
carry
out
studies
and
projections
18
to
advise
participants
regarding
present
and
estimated
future
19
qualified
homebuyer
expenses,
procure
insurance
against
any
20
loss
in
connection
with
the
trust,
enter
into
participation
21
agreements
with
participants,
make
payments
to
or
on
behalf
22
of
beneficiaries
for
qualified
homebuyer
expenses,
and
invest
23
moneys
from
the
program
fund
in
any
investments
which
are
24
determined
by
the
treasurer
of
state
to
be
appropriate.
25
The
trust
may
enter
into
participation
agreements
with
26
participants
on
behalf
of
beneficiaries.
The
participant
27
contributes
moneys
into
an
account
for
a
beneficiary,
who
is
28
an
individual
to
benefit
from
advance
payments
of
qualified
29
homebuyer
expenses
on
behalf
of
the
beneficiary.
Moneys
30
accrued
by
participants
in
an
account
may
be
used
for
payments
31
to
or
on
behalf
of
a
beneficiary
for
qualified
homebuyer
32
expenses.
The
bill
defines
“qualified
homebuyer
expenses”
33
to
mean
any
of
the
following:
(1)
a
down
payment
or
closing
34
costs
for
the
qualified
purchase
of
a
single-family
residence
35
-51-
LSB
6158HV
(4)
91
md/jh
51/
57
H.F.
2745
in
Iowa
that
is
the
principal
residence
of
the
beneficiary
if
1
such
beneficiary
is
a
first-time
homebuyer
with
respect
to
such
2
purchase;
(2)
a
cost,
fee,
tax,
or
payment
incurred
by,
or
3
charged
or
assigned
to,
a
beneficiary
as
part
of
the
purchase;
4
or
(3)
any
United
States
veterans
administration
funding
fee
5
incurred
by
the
beneficiary
in
connection
with
a
veterans
6
administration
home
loan
guaranty
program.
The
bill
defines
7
“first-time
homebuyer”
to
mean
an
individual
who
is
a
resident
8
of
Iowa
and
who
does
not
own,
either
individually
or
jointly,
a
9
single-family
or
multifamily
residence,
and
who
has
not
owned
10
or
purchased,
either
individually
or
jointly,
a
single-family
11
or
multifamily
residence
for
a
period
of
three
years
prior
to
12
the
date
of
the
qualified
purchase
for
which
the
eligible
home
13
costs
are
paid
or
reimbursed
from
an
account.
Under
the
bill,
14
“qualified
purchase”
means
the
purchase
of
a
single-family
15
residence
in
Iowa
by
the
account’s
beneficiary
90
or
more
days
16
after
the
date
the
participant
first
opened
the
account.
17
The
bill
establishes
an
Iowa
income
tax
deduction
for
the
18
participant
in
an
agreement
for
amounts
contributed
to
an
19
account
by
the
participant
during
the
applicable
tax
year,
not
20
to
exceed
$5,500
per
beneficiary
per
year
adjusted
annually
to
21
reflect
increases
in
the
consumer
price
index.
Additionally,
22
income
from
interest
and
earnings
received
from
the
FirstHome
23
Iowa
program
trust
created
in
new
Code
chapter
12L
is
deducted
24
from
income.
Distributions
or
transfers
from
an
account
are
25
considered
income
for
Iowa
income
tax
purposes,
to
the
extent
26
such
amount
was
previously
deducted
as
a
contribution
to
the
27
trust,
if
the
amount
is
used
for
purposes
other
than
the
28
payment
of
qualified
homebuyer
expenses.
29
The
bill
allows
a
beneficiary
under
an
agreement
to
be
30
changed
and
allows
agreements
to
be
amended
in
order
to
31
enable
participants
to
increase
or
decrease
the
level
of
32
participation,
change
the
designation
of
successors,
and
carry
33
out
similar
matters
as
authorized
by
rule.
34
The
bill
requires
the
treasurer
of
state
to
segregate
moneys
35
-52-
LSB
6158HV
(4)
91
md/jh
52/
57
H.F.
2745
received
by
the
trust
into
two
funds:
(1)
the
FirstHome
Iowa
1
program
fund,
which
includes
moneys
paid
into
accounts
by
2
participants;
and
(2)
the
administrative
fund
to
be
used
for
3
administration
of
the
program,
which
includes
administrative
4
fees
collected.
5
The
bill
establishes
procedures
for
the
cancellation
of
6
agreements
or
termination
of
the
program,
requirements
for
7
ownership
of
payments
made
under
an
agreement,
requirements
8
related
to
income
derived
from
investments,
and
establishes
9
audit
and
reporting
requirements
for
the
program.
10
The
bill
amends
the
Iowa
first-time
homebuyer
savings
11
account
Act
under
Code
chapter
541B
to
allow
for
the
withdrawal
12
and
deposit
of
account
balances
under
Code
chapter
541B
to
13
accounts
within
the
FirstHome
Iowa
program
trust
without
14
penalty
or
taxation
in
this
state
if
such
withdrawal
is
15
deposited
in
an
account
within
the
FirstHome
Iowa
program
trust
16
within
30
days
of
the
withdrawal.
The
bill
also
authorizes
17
the
treasurer
of
state
to,
by
rule,
provide
for
the
direct
18
transfer
of
moneys
within
an
account
under
Code
chapter
541B
19
to
a
FirstHome
Iowa
program
trust
account
without
penalty
or
20
taxation
in
this
state.
The
bill
prohibits
new
accounts
under
21
Code
chapter
541B
from
being
established
on
or
after
July
1,
22
2026.
23
DIVISION
X
——
VALUATIONS
——
ABNORMAL
TRANSACTIONS
——
REAL
24
ESTATE
TRANSFER
TAX
FORMS.
The
bill
amends
Code
section
428A.7
25
governing
real
estate
transfer
tax
forms
for
the
declaration
26
of
value
prescribed
by
the
department
of
revenue
by
specifying
27
examples
of
the
types
of
special
facts
and
circumstances
that
28
may
distort
market
value.
29
The
bill
modifies
the
list
of
examples
of
abnormal
property
30
transactions
that
are
to
be
excluded
from
consideration
or
31
adjusted
to
eliminate
distortions
of
market
value
when
valuing
32
property
to
include
built-to-suit
construction,
sale-leaseback
33
transactions,
leased
fee
sales,
and
instead
of
sales
to
34
immediate
family,
sales
between
related
parties.
35
-53-
LSB
6158HV
(4)
91
md/jh
53/
57
H.F.
2745
This
division
of
the
bill
applies
retroactively
to
1
assessment
years
beginning
on
or
after
January
1,
2026.
2
DIVISION
XI
——
LOCAL
GOVERNMENT
BUDGET
STATEMENTS.
Code
3
section
24.2A
requires
the
county
auditor
to
mail
statements
4
containing
certain
county,
city,
and
school
district
budget
and
5
property
tax
information
to
each
property
owner
or
taxpayer.
6
For
budgets
for
fiscal
years
beginning
on
or
after
July
1,
7
2027,
the
bill
authorizes
those
statements
to
be
to
be
posted
8
on
the
political
subdivision’s
internet
site
by
March
15
in
9
lieu
of
mailing
individual
statements.
Additionally,
if
the
10
political
subdivision
maintains
a
social
media
account
on
11
one
or
more
social
media
applications,
the
statement
or
an
12
electronic
link
to
the
statement
shall
be
posted
on
each
such
13
account
on
a
date
no
later
than
March
15.
14
Code
section
24.2A,
in
part,
requires
the
county
auditor
to
15
provide
by
mail
individual
statements
to
property
taxpayers
16
that
includes
various
pieces
of
information
relating
to
the
17
property
tax
dollars
and
levies
of
cities,
counties,
and
school
18
districts.
The
bill
provides
that
such
statements
will
also
19
include
information
for
all
other
certifying
boards
that
are
20
not
a
city,
county,
or
school;
however,
all
such
entities
shall
21
be
considered
a
single
political
subdivision
and
identified
22
under
a
designation
of
“special
taxing
districts”
on
each
23
statement.
24
The
bill
also
strikes
the
current
list
of
items
that
must
25
be
included
on
each
individual
statement
and
establishes
the
26
minimum
contents
for
the
statement.
27
The
bill
requires
that
the
statements
be
clear,
concise,
and
28
written
in
plain
language,
and
provides
that
the
information
29
in
the
individual
statements
may
be
presented
using
tables,
30
written
narrative,
and
graphic
representations,
and
shall
31
contain
the
internet
site,
mailing
address,
and
a
telephone
32
number
for
each
political
subdivision
that
owners
and
taxpayers
33
may
call
if
they
have
questions
related
to
the
statement.
The
34
bill
requires
the
department
of
management
to
consult
with
35
-54-
LSB
6158HV
(4)
91
md/jh
54/
57
H.F.
2745
the
Iowa
league
of
cities
and
the
Iowa
state
association
of
1
counties
prior
to
prescribing
the
form
for
the
statements.
2
This
division
of
the
bill
may
include
a
state
mandate
as
3
defined
in
Code
section
25B.3.
The
bill
makes
inapplicable
4
Code
section
25B.2(3),
which
would
relieve
a
political
5
subdivision
from
complying
with
a
state
mandate
if
funding
for
6
the
cost
of
the
state
mandate
is
not
provided
or
specified.
7
Therefore,
political
subdivisions
are
required
to
comply
with
8
any
state
mandate
included
in
this
division
of
the
bill.
9
This
division
of
the
bill
applies
to
political
subdivision
10
budgets
for
fiscal
years
beginning
on
or
after
July
1,
2027.
11
DIVISION
XII
——
DIVISION
OF
REVENUE
——
DATA
CENTERS.
The
12
bill
excludes
the
school
district
foundation
property
tax
13
imposed
under
Code
section
257.3
from
the
division
of
revenue
14
under
Code
section
403.19
(tax
increment
financing)
for
taxes
15
levied
against
a
qualified
data
center.
The
bill
defines
16
“qualified
data
center”
to
be
a
data
center,
as
defined
in
17
Code
section
423.3(95),
for
which
site
preparation
activities,
18
as
defined
in
Code
section
423.3(95),
began
on
or
after
the
19
effective
date
of
the
division
of
the
bill,
which
is
effective
20
upon
enactment.
The
bill
prohibits
such
foundation
property
21
tax
from
being
divided
and
paid
into
the
municipality’s
special
22
fund
for
the
payment
of
urban
renewal
indebtedness
but
instead
23
requires
the
tax
to
be
levied,
collected,
and
paid
to
the
24
school
district
in
the
same
manner
as
all
other
property
taxes.
25
The
exclusion
in
the
bill
applies
to
property
taxes
due
and
26
payable
in
fiscal
years
beginning
on
or
after
July
1,
2027.
27
DIVISION
XIII
——
ELECTION
DATES
——
BONDS.
Current
Code
28
section
39.2(4)(d)
specifies
the
special
election
date
for
29
political
subdivisions
if
the
election
is
in
whole
or
in
part
30
for
the
question
of
issuing
bonds
or
other
indebtedness
is
31
the
first
Tuesday
after
the
first
Monday
in
November.
The
32
bill
adds
the
first
Tuesday
after
the
first
Monday
in
June
33
as
a
date
for
such
an
election.
The
bill,
however,
provides
34
that
a
political
subdivision
shall
not
hold
an
election
on
the
35
-55-
LSB
6158HV
(4)
91
md/jh
55/
57
H.F.
2745
question
of
issuing
bonds
or
other
indebtedness
on
two
such
1
consecutive
election
dates
authorized
under
that
provision.
2
DIVISION
XIV
——
EMERGENCY
MEDICAL
SERVICES
LEVY.
Code
3
chapter
422D
authorizes
a
$0.75
per
$1,000
of
assessed
value
4
county
property
tax
levy
for
emergency
medical
services
if
5
approved
at
election.
For
fiscal
years
beginning
on
or
after
6
July
1,
2027,
the
bill
increases
the
maximum
authorized
levy
7
rate
to
$1.50
per
$1,000
of
assessed
value
if
such
increased
8
rate
is
approved
at
an
election
held
on
or
after
July
1,
2026.
9
DIVISION
XV
——
UTILITY
REPLACEMENT
TAX
TASK
FORCE.
Code
10
section
437A.15(7)
establishes
a
utility
replacement
tax
task
11
force.
The
bill
modifies
the
duties
of
the
task
force
to
study
12
the
accuracy
of
the
taxes
imposed
under
Code
chapters
437A
13
and
437B,
ways
to
modernize
the
administration
of
such
taxes,
14
methods
of
simplifying
administration
of
the
replacement
taxes,
15
elimination
of
property
taxes
imposed
under
Code
chapter
437A
16
or
437B,
simplification
of
thresholds
for
replacement
tax
rate
17
adjustments
while
retaining
tax
stability,
and
the
effects
of
18
such
taxes
on
local
taxing
authorities,
local
taxing
districts,
19
consumers,
and
taxpayers
through
December
31,
2026,
including
20
ways
to
maintain
continuity
for
local
taxing
districts
and
21
consumers
and
ways
to
provide
a
competitive
and
equitable
22
tax
environment
for
taxpayers.
If
the
task
force
recommends
23
modifications
to
the
replacement
taxes,
the
department
24
of
management
shall
transmit
those
recommendations
to
the
25
general
assembly.
This
division
of
the
bill
takes
effect
upon
26
enactment.
27
DIVISION
XVI
——
SCHOOL
DISTRICT
UNSPENT
BALANCES
——
ON-TIME
28
FUNDING
AND
MODIFIED
SUPPLEMENTAL
AMOUNTS.
Code
section
257.7
29
determines
the
authorized
expenditures
of
a
school
district
30
for
a
budget
year,
which
in
part
includes
the
addition
of
the
31
actual
unspent
balance
from
the
preceding
year.
The
bill
32
limits
such
additional
amount
to
an
amount
equal
to
35
percent
33
of
the
school
district’s
authorized
expenditures
for
the
budget
34
year
immediately
preceding
the
base
year
unless
a
greater
35
-56-
LSB
6158HV
(4)
91
md/jh
56/
57
H.F.
2745
amount
is
authorized
by
the
school
budget
review
committee
1
based
on
one
or
more
grounds
authorized
for
the
approval
of
a
2
modified
supplemental
amount
under
Code
section
257.31.
3
Code
section
257.13
authorizes
an
on-time
funding
budget
4
adjustment
for
school
districts
when
the
district’s
actual
5
enrollment
for
the
budget
year
is
greater
than
the
district’s
6
budget
enrollment
for
the
budget
year
and
the
school
7
budget
review
committee
is
required
to
establish
a
modified
8
supplemental
amount
for
such
a
school
district
if
the
district
9
adopts
a
resolution
to
receive
the
adjustment
and
notifies
the
10
school
budget
review
committee.
Under
the
bill,
for
school
11
budget
years
beginning
on
or
after
July
1,
2026,
the
school
12
budget
review
committee
may
establish
a
modified
supplemental
13
amount
if
the
district
has
adopted
a
resolution
and
notifies
14
the
school
budget
review
committee
on
or
before
a
date
15
established
by
the
committee.
16
The
bill
also
requires
the
board
of
directors
of
each
17
school
district
to
establish
a
policy
that
defines
a
18
targeted
range
and
maximum
amount
of
unspent
balance
of
19
authorized
expenditures,
determined
by
a
percent
of
authorized
20
expenditures
under
Code
section
257.7
or
other
methodology
21
specified
in
the
policy.
The
policy
shall
also
state
the
22
date
the
policy
was
adopted
and
the
date
the
policy
was
most
23
recently
reviewed
or
revised.
The
targeted
range
and
maximum
24
amount
established
in
the
policy
shall
be
made
with
the
intent
25
to
equalize
educational
opportunity,
provide
a
good
education
26
for
all
the
children
of
the
school
district,
provide
property
27
tax
relief,
decrease
the
percentage
of
school
costs
paid
from
28
property
taxes,
and
to
provide
reasonable
control
of
school
29
costs.
Targeted
ranges
and
maximum
amounts
defined
in
the
30
policy
shall
be
reviewed
annually
by
the
board
of
directors
and
31
such
review
shall
be
entered
in
the
minutes
of
the
board
and
32
approved
revisions
shall
be
made
to
the
policy.
33
This
division
of
the
bill
takes
effect
upon
enactment.
34
-57-
LSB
6158HV
(4)
91
md/jh
57/
57