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Senate
File
651
-
Introduced
SENATE
FILE
651
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
1227)
A
BILL
FOR
An
Act
relating
to
local
government
property
taxes,
financial
1
authority,
and
budgets,
modifying
appropriations,
and
2
including
effective
date,
applicability,
and
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2982SV
(2)
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S.F.
651
DIVISION
I
1
COUNTY
PROPERTY
TAXES
AND
BUDGETS
2
Section
1.
Section
331.423,
subsection
1,
paragraph
b,
3
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
4
(1)
For
each
fiscal
year
beginning
on
or
after
July
1,
5
2024,
but
before
July
1,
2028
2026
,
subject
to
subparagraph
6
(3),
the
greater
of
three
dollars
and
fifty
cents
per
thousand
7
dollars
of
assessed
value
used
to
calculate
taxes
for
general
8
county
services
for
the
budget
year
and
the
adjusted
general
9
county
basic
levy
rate,
as
adjusted
under
subparagraph
(2),
if
10
applicable.
11
Sec.
2.
Section
331.423,
subsection
1,
paragraph
c,
Code
12
2025,
is
amended
to
read
as
follows:
13
c.
For
each
fiscal
year
beginning
on
or
after
July
1,
2028,
14
three
dollars
and
fifty
cents
per
thousand
dollars
of
assessed
15
value.
For
the
fiscal
year
beginning
July
1,
2026,
the
greater
16
of:
17
(1)
A
levy
rate
per
one
thousand
dollars
of
assessed
value
18
equal
to
one
thousand
multiplied
by
the
quotient
of
one
hundred
19
two
percent
of
the
current
fiscal
year’s
actual
property
tax
20
dollars
certified
for
levy
under
this
subsection
1
divided
by
21
the
remainder
of
the
total
assessed
value
used
to
calculate
22
such
taxes
for
the
budget
year
minus
value
attributable
to
new
23
valuation.
24
(2)
A
levy
rate
per
one
thousand
dollars
of
assessed
value
25
that
results
in
an
amount
of
actual
property
tax
dollars
26
certified
for
levy
under
this
subsection
1
equal
to
one
27
hundred
and
one-half
percent
of
the
actual
property
tax
dollars
28
certified
for
levy
under
this
subsection
1
for
the
current
29
fiscal
year.
30
Sec.
3.
Section
331.423,
subsection
1,
Code
2025,
is
amended
31
by
adding
the
following
new
paragraph:
32
NEW
PARAGRAPH
.
d.
(1)
For
each
fiscal
year
beginning
33
on
or
after
July
1,
2027,
the
levy
rate
imposed
under
this
34
subsection
1
for
the
current
fiscal
year,
unless
subject
to
35
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651
subparagraph
(2),
and
for
the
budget
year
beginning
July
1,
1
2027,
only,
not
less
than
a
levy
rate
per
one
thousand
dollars
2
of
assessed
value
that
results
in
an
amount
of
actual
property
3
tax
dollars
certified
for
levy
under
this
subsection
1
equal
4
to
one
hundred
and
one-half
percent
of
the
actual
property
tax
5
dollars
certified
for
levy
under
this
subsection
1
for
the
6
current
fiscal
year.
7
(2)
(a)
If
the
total
assessed
value,
excluding
value
8
attributable
to
new
valuation,
used
to
calculate
taxes
for
9
general
county
services
under
this
subsection
1
for
the
budget
10
year
is
equal
to
or
exceeds
one
hundred
two
percent
of
the
11
total
assessed
value
used
to
calculate
taxes
for
general
12
county
services
for
the
current
fiscal
year,
the
levy
rate
13
imposed
under
this
subsection
1
shall
not
exceed
a
levy
rate
14
per
one
thousand
dollars
of
assessed
value
that
is
equal
to
15
one
thousand
multiplied
by
the
quotient
obtained
by
dividing
16
the
product
of
the
budget
adjustment
factor
multiplied
by
the
17
current
fiscal
year’s
actual
property
tax
dollars
certified
18
for
levy
under
this
subsection
1
by
the
remainder
of
the
total
19
assessed
value
used
to
calculate
such
taxes
for
the
budget
year
20
minus
value
attributable
to
new
valuation.
21
(b)
(i)
For
purposes
of
this
subparagraph,
“budget
22
adjustment
factor”
is
equal
to
one
of
the
following:
23
(A)
If
the
percentage
change
in
the
consumer
price
index
for
24
all
urban
consumers
is
less
than
four,
one
hundred
two
percent.
25
(B)
If
the
percentage
change
in
the
consumer
price
index
for
26
all
urban
consumers
is
equal
to
or
greater
than
four
but
less
27
than
six,
one
hundred
three
percent.
28
(C)
If
the
percentage
change
in
the
consumer
price
index
for
29
all
urban
consumers
is
equal
to
or
greater
than
six
but
less
30
than
eight,
one
hundred
four
percent.
31
(D)
If
the
percentage
change
in
the
consumer
price
index
32
for
all
urban
consumers
is
equal
to
or
greater
than
eight,
one
33
hundred
five
percent.
34
(ii)
The
percentage
change
in
the
consumer
price
index
for
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all
urban
consumers
shall
be
equal
to
one
hundred
multiplied
1
by
the
quotient
of
the
remainder
of
the
published
value
of
the
2
consumer
price
index
for
all
urban
consumers
for
the
month
3
ending
six
months
prior
to
the
beginning
of
the
applicable
4
budget
year
minus
the
published
value
of
the
consumer
price
5
index
for
all
urban
consumers
for
the
month
ending
eighteen
6
months
prior
to
the
beginning
of
the
applicable
budget
year
7
divided
by
the
published
value
of
the
consumer
price
index
for
8
all
urban
consumers
for
the
month
ending
eighteen
months
prior
9
to
the
beginning
of
the
applicable
budget
year.
10
Sec.
4.
Section
331.423,
subsection
2,
paragraph
b,
11
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
12
(1)
For
each
fiscal
year
beginning
on
or
after
July
1,
2024,
13
but
before
July
1,
2028
2026
,
subject
to
subparagraph
(3),
the
14
greater
of
three
dollars
and
ninety-five
cents
per
thousand
15
dollars
of
assessed
value
used
to
calculate
taxes
for
rural
16
county
services
for
the
budget
year
and
the
adjusted
rural
17
county
basic
levy
rate,
as
adjusted
under
subparagraph
(2),
if
18
applicable.
19
Sec.
5.
Section
331.423,
subsection
2,
paragraph
c,
Code
20
2025,
is
amended
to
read
as
follows:
21
c.
For
each
fiscal
year
beginning
on
or
after
July
1,
2028,
22
three
dollars
and
ninety-five
cents
per
thousand
dollars
of
23
assessed
value.
For
the
fiscal
year
beginning
July
1,
2026,
24
the
greater
of:
25
(1)
A
levy
rate
per
one
thousand
dollars
of
assessed
value
26
equal
to
one
thousand
multiplied
by
the
quotient
of
one
hundred
27
two
percent
of
the
current
fiscal
year’s
actual
property
tax
28
dollars
certified
for
levy
under
this
subsection
2
divided
by
29
the
remainder
of
the
total
assessed
value
used
to
calculate
30
such
taxes
for
the
budget
year
minus
value
attributable
to
new
31
valuation.
32
(2)
A
levy
rate
per
one
thousand
dollars
of
assessed
value
33
that
results
in
an
amount
of
actual
property
tax
dollars
34
certified
for
levy
under
this
subsection
2
equal
to
one
35
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651
hundred
and
one-half
percent
of
the
actual
property
tax
dollars
1
certified
for
levy
under
this
subsection
2
for
the
current
2
fiscal
year.
3
Sec.
6.
Section
331.423,
subsection
2,
Code
2025,
is
amended
4
by
adding
the
following
new
paragraph:
5
NEW
PARAGRAPH
.
d.
(1)
For
each
fiscal
year
beginning
6
on
or
after
July
1,
2027,
the
levy
rate
imposed
under
this
7
subsection
2
for
the
current
fiscal
year,
unless
subject
to
8
subparagraph
(2),
and
for
the
budget
year
beginning
July
1,
9
2027,
only,
not
less
than
a
levy
rate
per
one
thousand
dollars
10
of
assessed
value
that
results
in
an
amount
of
actual
property
11
tax
dollars
certified
for
levy
under
this
subsection
2
equal
12
to
one
hundred
and
one-half
percent
of
the
actual
property
tax
13
dollars
certified
for
levy
under
this
subsection
2
for
the
14
current
fiscal
year.
15
(2)
(a)
If
the
total
assessed
value,
excluding
value
16
attributable
to
new
valuation,
used
to
calculate
taxes
for
17
rural
county
services
under
this
subsection
2
for
the
budget
18
year
is
equal
to
or
exceeds
one
hundred
two
percent
of
the
19
total
assessed
value
used
to
calculate
taxes
for
rural
county
20
services
for
the
current
fiscal
year,
the
levy
rate
imposed
21
under
this
subsection
2
shall
not
exceed
a
levy
rate
per
22
one
thousand
dollars
of
assessed
value
that
is
equal
to
one
23
thousand
multiplied
by
the
quotient
obtained
by
dividing
the
24
product
of
the
budget
adjustment
factor
multiplied
by
the
25
current
fiscal
year’s
actual
property
tax
dollars
certified
26
for
levy
under
this
subsection
2
by
the
remainder
of
the
total
27
assessed
value
used
to
calculate
such
taxes
for
the
budget
year
28
minus
value
attributable
to
new
valuation.
29
(b)
(i)
For
purposes
of
this
subparagraph,
“budget
30
adjustment
factor”
is
equal
to
one
of
the
following:
31
(A)
If
the
percentage
change
in
the
consumer
price
index
for
32
all
urban
consumers
is
less
than
four,
one
hundred
two
percent.
33
(B)
If
the
percentage
change
in
the
consumer
price
index
for
34
all
urban
consumers
is
equal
to
or
greater
than
four
but
less
35
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651
than
six,
one
hundred
three
percent.
1
(C)
If
the
percentage
change
in
the
consumer
price
index
for
2
all
urban
consumers
is
equal
to
or
greater
than
six
but
less
3
than
eight,
one
hundred
four
percent.
4
(D)
If
the
percentage
change
in
the
consumer
price
index
5
for
all
urban
consumers
is
equal
to
or
greater
than
eight,
one
6
hundred
five
percent.
7
(ii)
The
percentage
change
in
the
consumer
price
index
for
8
all
urban
consumers
shall
be
equal
to
one
hundred
multiplied
9
by
the
quotient
of
the
remainder
of
the
published
value
of
the
10
consumer
price
index
for
all
urban
consumers
for
the
month
11
ending
six
months
prior
to
the
beginning
of
the
applicable
12
budget
year
minus
the
published
value
of
the
consumer
price
13
index
for
all
urban
consumers
for
the
month
ending
eighteen
14
months
prior
to
the
beginning
of
the
applicable
budget
year
15
divided
by
the
published
value
of
the
consumer
price
index
for
16
all
urban
consumers
for
the
month
ending
eighteen
months
prior
17
to
the
beginning
of
the
applicable
budget
year.
18
Sec.
7.
Section
331.423,
subsection
3,
Code
2025,
is
amended
19
by
adding
the
following
new
paragraph:
20
NEW
PARAGRAPH
.
c.
“New
valuation”
means
the
increase
21
from
the
current
fiscal
year
to
the
budget
year
in
taxable
22
valuation,
as
shown
on
the
assessment
roll
due
to
the
23
following,
the
amount
of
each
as
reported
under
section
331.510
24
by
the
county
auditor
to
the
department
of
management:
25
(1)
New
construction.
26
(2)
Additions
or
improvements
to
existing
structures
that
27
are
not
normal
and
necessary
repairs
under
section
441.21,
28
subsection
8.
29
(3)
Net
boundary
adjustments,
including
annexation,
30
severance,
incorporation,
consolidation,
or
discontinuance
as
31
those
terms
are
defined
in
section
368.1.
32
Sec.
8.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
33
effect
January
1,
2026.
34
Sec.
9.
APPLICABILITY.
This
division
of
this
Act
applies
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to
property
taxes
and
budgets
for
fiscal
years
beginning
on
or
1
after
July
1,
2026.
2
DIVISION
II
3
CITY
PROPERTY
TAXES
AND
BUDGETS
4
Sec.
10.
Section
384.1,
subsection
3,
paragraph
c,
5
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
6
(1)
For
each
fiscal
year
beginning
on
or
after
July
1,
7
2024,
but
before
July
1,
2028
2026
,
subject
to
subparagraph
8
(3),
a
city’s
tax
levy
for
the
general
fund,
except
for
levies
9
authorized
in
section
384.12
,
shall
not
exceed
in
any
tax
year
10
the
greater
of
eight
dollars
and
ten
cents
per
thousand
dollars
11
of
assessed
value
used
to
calculate
taxes
for
the
budget
year
12
and
the
adjusted
city
general
fund
levy
rate,
as
adjusted
under
13
subparagraph
(2),
if
applicable.
14
Sec.
11.
Section
384.1,
subsection
3,
paragraph
d,
Code
15
2025,
is
amended
to
read
as
follows:
16
d.
(1)
For
each
fiscal
year
beginning
on
or
after
July
1,
17
2028,
a
city’s
tax
levy
rate
for
the
general
fund,
except
for
18
levies
authorized
in
section
384.12
,
shall
not
exceed
eight
19
dollars
and
ten
cents
per
thousand
dollars
of
assessed
value
20
used
to
calculate
taxes
in
any
fiscal
year.
For
the
fiscal
21
year
beginning
July
1,
2026,
a
city’s
tax
levy
rate
for
the
22
general
fund,
except
for
levies
authorized
in
section
384.12,
23
shall
not
exceed
the
greater
of:
24
(a)
A
levy
rate
per
one
thousand
dollars
of
assessed
value
25
equal
to
one
thousand
multiplied
by
the
quotient
of
one
hundred
26
two
percent
of
the
current
fiscal
year’s
actual
property
tax
27
dollars
certified
for
levy
under
this
subsection
divided
by
28
the
remainder
of
the
total
assessed
value
used
to
calculate
29
such
taxes
for
the
budget
year
minus
value
attributable
to
new
30
valuation.
31
(b)
A
levy
rate
per
one
thousand
dollars
of
assessed
value
32
that
results
in
an
amount
of
actual
property
tax
dollars
33
certified
for
levy
under
this
subsection
equal
to
one
hundred
34
and
one-half
percent
of
the
actual
property
tax
dollars
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certified
for
levy
under
this
subsection
for
the
current
fiscal
1
year.
2
(2)
Notwithstanding
other
provisions
of
this
paragraph,
3
if
a
city’s
actual
levy
rate
for
the
current
fiscal
year
is
4
zero
dollars
per
one
thousand
dollars
of
assessed
value,
a
levy
5
rate
per
one
thousand
dollars
of
assessed
value
equal
to
one
6
thousand
multiplied
by
the
quotient
of
one
hundred
two
percent
7
of
the
city’s
certified
general
fund
budget
for
the
current
8
fiscal
year
divided
by
the
remainder
of
the
total
assessed
9
value
used
to
calculate
taxes
for
the
budget
year
minus
value
10
attributable
to
new
valuation.
11
Sec.
12.
Section
384.1,
subsection
3,
Code
2025,
is
amended
12
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
e.
(1)
For
each
fiscal
year
beginning
on
14
or
after
July
1,
2027,
a
city’s
tax
levy
rate
for
the
general
15
fund,
except
for
levies
authorized
in
section
384.12,
shall
16
not
exceed
the
levy
rate
imposed
under
this
subsection
for
the
17
current
fiscal
year,
unless
subject
to
subparagraph
(2),
and
18
for
the
budget
year
beginning
July
1,
2027,
only,
not
less
than
19
a
levy
rate
per
one
thousand
dollars
of
assessed
value
that
20
results
in
an
amount
of
actual
property
tax
dollars
certified
21
for
levy
under
this
subsection
equal
to
one
hundred
and
22
one-half
percent
of
the
actual
property
tax
dollars
certified
23
for
levy
under
this
subsection
for
the
current
fiscal
year.
24
(2)
(a)
If
the
total
assessed
value,
excluding
value
25
attributable
to
new
valuation,
used
to
calculate
taxes
under
26
this
subsection
for
the
budget
year
is
equal
to
or
exceeds
27
one
hundred
two
percent
of
the
total
assessed
value
used
to
28
calculate
taxes
under
this
subsection
for
the
current
fiscal
29
year,
the
city’s
levy
rate
under
this
subsection
shall
not
30
exceed
a
levy
rate
per
one
thousand
dollars
of
assessed
value
31
that
is
equal
to
one
thousand
multiplied
by
the
quotient
32
obtained
by
dividing
the
product
of
the
budget
adjustment
33
factor
multiplied
by
the
current
fiscal
year’s
actual
property
34
tax
dollars
certified
for
levy
under
this
subsection
by
the
35
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remainder
of
the
total
assessed
value
used
to
calculate
such
1
taxes
for
the
budget
year
minus
value
attributable
to
new
2
valuation.
3
(b)
(i)
For
purposes
of
this
subparagraph,
“budget
4
adjustment
factor”
is
equal
to
one
of
the
following:
5
(A)
If
the
percentage
change
in
the
consumer
price
index
for
6
all
urban
consumers
is
less
than
four,
one
hundred
two
percent.
7
(B)
If
the
percentage
change
in
the
consumer
price
index
for
8
all
urban
consumers
is
equal
to
or
greater
than
four
but
less
9
than
six,
one
hundred
three
percent.
10
(C)
If
the
percentage
change
in
the
consumer
price
index
for
11
all
urban
consumers
is
equal
to
or
greater
than
six
but
less
12
than
eight,
one
hundred
four
percent.
13
(D)
If
the
percentage
change
in
the
consumer
price
index
14
for
all
urban
consumers
is
equal
to
or
greater
than
eight,
one
15
hundred
five
percent.
16
(ii)
The
percentage
change
in
the
consumer
price
index
for
17
all
urban
consumers
shall
be
equal
to
one
hundred
multiplied
18
by
the
quotient
of
the
remainder
of
the
published
value
of
the
19
consumer
price
index
for
all
urban
consumers
for
the
month
20
ending
six
months
prior
to
the
beginning
of
the
applicable
21
budget
year
minus
the
published
value
of
the
consumer
price
22
index
for
all
urban
consumers
for
the
month
ending
eighteen
23
months
prior
to
the
beginning
of
the
applicable
budget
year
24
divided
by
the
published
value
of
the
consumer
price
index
for
25
all
urban
consumers
for
the
month
ending
eighteen
months
prior
26
to
the
beginning
of
the
applicable
budget
year.
27
(3)
Notwithstanding
other
provisions
of
this
paragraph,
28
if
a
city’s
actual
levy
rate
for
the
current
fiscal
year
is
29
zero
dollars
per
one
thousand
dollars
of
assessed
value,
the
30
city’s
levy
rate
under
this
subsection
shall
not
exceed
a
levy
31
rate
per
one
thousand
dollars
of
assessed
value
equal
to
one
32
thousand
multiplied
by
the
quotient
of
one
hundred
two
percent
33
of
the
city’s
certified
general
fund
budget
for
the
current
34
fiscal
year
divided
by
the
remainder
of
the
total
assessed
35
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value
used
to
calculate
taxes
for
the
budget
year
minus
value
1
attributable
to
new
valuation.
2
Sec.
13.
Section
384.1,
subsection
4,
Code
2025,
is
amended
3
by
adding
the
following
new
paragraph:
4
NEW
PARAGRAPH
.
c.
“New
valuation”
means
the
increase
5
from
the
current
fiscal
year
to
the
budget
year
in
taxable
6
valuation,
as
shown
on
the
assessment
roll
due
to
the
7
following,
the
amount
of
each
as
reported
under
section
331.510
8
by
the
county
auditor
to
the
department
of
management:
9
(1)
New
construction.
10
(2)
Additions
or
improvements
to
existing
structures
that
11
are
not
normal
and
necessary
repairs
under
section
441.21,
12
subsection
8.
13
(3)
Net
boundary
adjustments,
including
annexation,
14
severance,
incorporation,
consolidation,
or
discontinuance
as
15
those
terms
are
defined
in
section
368.1.
16
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
17
effect
January
1,
2026.
18
Sec.
15.
APPLICABILITY.
This
division
of
this
Act
applies
19
to
property
taxes
and
budgets
for
fiscal
years
beginning
on
or
20
after
July
1,
2026.
21
DIVISION
III
22
SCHOOL
TAXES
AND
BUDGETS
23
Sec.
16.
Section
257.1,
subsection
2,
paragraph
b,
Code
24
2025,
is
amended
to
read
as
follows:
25
b.
(1)
(a)
For
the
budget
year
commencing
July
1,
1999,
26
and
for
each
succeeding
budget
year
beginning
before
July
27
1,
2022,
the
regular
program
foundation
base
per
pupil
is
28
eighty-seven
and
five-tenths
percent
of
the
regular
program
29
state
cost
per
pupil.
30
(b)
For
the
budget
year
commencing
July
1,
2022,
and
for
31
each
succeeding
budget
year
beginning
before
July
1,
2026
,
32
the
regular
program
foundation
base
per
pupil
is
eighty-eight
33
and
four-tenths
percent
of
the
regular
program
state
cost
per
34
pupil.
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(c)
For
the
budget
year
commencing
July
1,
2026,
and
each
1
succeeding
budget
year,
the
regular
program
foundation
base
per
2
pupil
is
one
hundred
percent
of
the
regular
program
state
cost
3
per
pupil.
4
(2)
(a)
For
the
budget
year
commencing
July
1,
1991,
and
5
for
each
succeeding
budget
year
beginning
before
July
1,
2026,
6
the
special
education
support
services
foundation
base
is
7
seventy-nine
percent
of
the
special
education
support
services
8
state
cost
per
pupil.
9
(b)
For
the
budget
year
commencing
July
1,
2026,
and
each
10
succeeding
budget
year,
the
special
education
support
services
11
foundation
base
is
one
hundred
percent
of
the
special
education
12
support
services
state
cost
per
pupil.
13
(3)
The
combined
foundation
base
is
the
sum
of
the
regular
14
program
foundation
base,
the
special
education
support
services
15
foundation
base,
the
total
teacher
salary
supplement
district
16
cost,
the
total
professional
development
supplement
district
17
cost,
the
total
early
intervention
supplement
district
cost,
18
the
total
teacher
leadership
supplement
district
cost,
and
the
19
total
area
education
agency
teacher
salary
supplement
district
20
cost
,
and
the
amounts
added
to
the
combined
district
cost
of
21
the
school
district
for
media
services
and
educational
services
22
under
section
257.37
.
23
Sec.
17.
Section
257.3,
subsection
1,
paragraph
a,
Code
24
2025,
is
amended
to
read
as
follows:
25
a.
(1)
Except
as
provided
in
subsections
2
and
3
,
a
school
26
district
shall
cause
to
be
levied
each
budget
year
beginning
27
before
July
1,
2026
,
for
the
school
general
fund,
a
foundation
28
property
tax
equal
to
five
dollars
and
forty
cents
per
thousand
29
dollars
of
assessed
valuation
on
all
taxable
property
in
the
30
district.
The
county
auditor
shall
spread
the
foundation
levy
31
over
all
taxable
property
in
the
district.
32
(2)
Except
as
provided
in
subsections
2
and
3,
a
school
33
district
shall
cause
to
be
levied
for
the
budget
year
beginning
34
July
1,
2026,
and
each
succeeding
budget
year,
for
the
school
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general
fund,
a
foundation
property
tax
equal
to
four
dollars
1
and
forty-eight
and
six
hundred
sixty-two
one-thousandths
cents
2
per
thousand
dollars
of
assessed
valuation
on
all
taxable
3
property
in
the
district.
The
county
auditor
shall
spread
the
4
foundation
levy
over
all
taxable
property
in
the
district.
5
Sec.
18.
Section
257.3,
subsection
2,
paragraphs
a
and
b,
6
Code
2025,
are
amended
to
read
as
follows:
7
a.
Notwithstanding
subsection
1,
a
reorganized
school
8
district
for
which
the
reorganization
takes
effect
on
or
after
9
July
1,
2026,
shall
cause
a
foundation
property
tax
of
four
10
three
dollars
and
forty
sixty-six
cents
per
thousand
dollars
of
11
assessed
valuation
to
be
levied
on
all
taxable
property
which,
12
in
the
year
preceding
a
reorganization,
was
within
a
school
13
district
affected
by
the
reorganization
as
defined
in
section
14
275.1,
or
in
the
year
preceding
a
dissolution
was
a
part
of
a
15
school
district
that
dissolved
if
the
dissolution
proposal
has
16
been
approved
by
the
director
of
the
department
of
education
17
pursuant
to
section
275.55.
18
b.
In
For
a
reorganized
school
district
for
which
the
19
reorganization
took
effect
on
or
after
July
1,
2026,
in
20
succeeding
school
years,
the
foundation
property
tax
levy
on
21
that
portion
shall
be
increased
to
the
rate
of
four
dollars
and
22
ninety
seven
cents
per
thousand
dollars
of
assessed
valuation
23
the
first
succeeding
year,
five
four
dollars
and
fifteen
24
twenty-eight
cents
per
thousand
dollars
of
assessed
valuation
25
the
second
succeeding
year,
and
five
four
dollars
and
forty
26
forty-eight
and
six
hundred
sixty-two
one-thousandths
cents
per
27
thousand
dollars
of
assessed
valuation
the
third
succeeding
28
year
and
each
year
thereafter
under
subsection
1,
paragraph
“a”
.
29
Sec.
19.
Section
257.4,
subsection
1,
paragraph
a,
Code
30
2025,
is
amended
by
adding
the
following
new
subparagraphs:
31
NEW
SUBPARAGRAPH
.
(10)
The
amount
added
to
the
combined
32
district
cost
of
the
school
district
for
media
services
under
33
section
257.37.
34
NEW
SUBPARAGRAPH
.
(11)
The
amount
added
to
the
combined
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district
cost
of
the
school
district
for
educational
services
1
under
section
257.37.
2
Sec.
20.
Section
257.4,
subsection
1,
paragraph
b,
Code
3
2025,
is
amended
to
read
as
follows:
4
b.
For
the
budget
year
beginning
July
1,
2008,
and
5
succeeding
budget
years
beginning
before
July
1,
2026
,
the
6
department
of
management
shall
annually
determine
an
adjusted
7
additional
property
tax
levy
and
a
statewide
maximum
adjusted
8
additional
property
tax
levy
rate,
not
to
exceed
the
statewide
9
average
additional
property
tax
levy
rate,
calculated
by
10
dividing
the
total
adjusted
additional
property
tax
levy
11
dollars
statewide
by
the
statewide
total
net
taxable
valuation.
12
For
purposes
of
this
paragraph,
the
adjusted
additional
13
property
tax
levy
shall
be
that
portion
of
the
additional
14
property
tax
levy
corresponding
to
the
state
cost
per
pupil
15
multiplied
by
a
school
district’s
weighted
enrollment,
and
then
16
multiplied
by
one
hundred
percent
less
the
regular
program
17
foundation
base
per
pupil
percentage
pursuant
to
section
18
257.1
,
and
then
reduced
by
the
amount
of
the
property
tax
19
replacement
payment
to
be
received
under
section
257.16B
and
20
the
amount
of
the
foundation
base
supplement
payment
to
be
21
received
under
section
257.16D
.
The
district
shall
receive
22
adjusted
additional
property
tax
levy
aid
in
an
amount
equal
23
to
the
difference
between
the
adjusted
additional
property
24
tax
levy
rate
and
the
statewide
maximum
adjusted
additional
25
property
tax
levy
rate,
as
applied
per
thousand
dollars
of
26
assessed
valuation
on
all
taxable
property
in
the
district.
27
The
statewide
maximum
adjusted
additional
property
tax
levy
28
rate
shall
be
annually
determined
by
the
department
taking
29
into
account
amounts
allocated
pursuant
to
section
257.15,
30
subsection
4
,
and
the
balance
of
the
property
tax
equity
and
31
relief
fund
created
in
section
257.16A
at
the
end
of
the
32
calendar
year.
33
Sec.
21.
Section
257.4,
subsection
2,
Code
2025,
is
amended
34
by
adding
the
following
new
paragraph:
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NEW
PARAGRAPH
.
c.
This
subsection
applies
to
budget
years
1
beginning
before
July
1,
2026.
2
Sec.
22.
Section
257.15,
subsections
2
and
3,
Code
2025,
are
3
amended
to
read
as
follows:
4
2.
Property
tax
adjustment
aid
for
1992-1993
and
succeeding
5
years
beginning
before
2026-2027
.
For
the
budget
year
beginning
6
July
1,
1992,
and
succeeding
budget
years
beginning
before
July
7
1,
2026
,
the
department
of
education
shall
pay
property
tax
8
adjustment
aid
to
a
school
district
equal
to
the
amount
paid
9
to
the
district
for
the
base
year
less
an
amount
equal
to
the
10
product
of
the
percent
by
which
the
taxable
valuation
in
the
11
district
increased,
if
the
taxable
valuation
increased,
from
12
January
1
of
the
year
prior
to
the
base
year
to
January
1
of
the
13
base
year
and
the
property
tax
adjustment
aid.
The
department
14
of
management
shall
adjust
the
rate
of
the
additional
property
15
tax
accordingly
and
notify
the
department
of
education
of
16
the
amount
of
aid
to
be
paid
to
each
district
from
moneys
17
appropriated
for
property
tax
adjustment
aid.
18
3.
Property
tax
adjustment
aid
appropriation.
There
19
is
appropriated
from
the
general
fund
of
the
state
to
the
20
department
of
education,
for
each
fiscal
year
beginning
21
before
July
1,
2026
,
an
amount
necessary
to
pay
property
22
tax
adjustment
aid
to
school
districts
under
this
section
.
23
Property
tax
adjustment
aid
shall
be
paid
to
school
districts
24
in
the
manner
provided
in
section
257.16
.
25
Sec.
23.
Section
257.15,
subsection
4,
paragraph
a,
26
subparagraph
(1),
subparagraph
division
(d),
Code
2025,
is
27
amended
to
read
as
follows:
28
(d)
For
the
budget
year
beginning
July
1,
2009,
and
29
succeeding
budget
years
beginning
before
July
1,
2026
,
30
twenty-four
million
dollars.
31
Sec.
24.
Section
257.15,
subsection
4,
paragraph
b,
Code
32
2025,
is
amended
to
read
as
follows:
33
b.
After
For
fiscal
years
beginning
before
July
1,
2025,
34
after
lowering
all
school
district
adjusted
additional
property
35
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tax
levy
rates
to
the
statewide
maximum
adjusted
additional
1
property
tax
levy
rate
under
paragraph
“a”
,
the
department
of
2
management
shall
use
any
remaining
funds
at
the
end
of
the
3
calendar
year
to
further
lower
additional
property
taxes
by
4
increasing
for
the
budget
year
beginning
the
following
July
5
1,
the
regular
program
foundation
base
per
pupil
percentage
6
under
section
257.1
.
Moneys
used
pursuant
to
this
paragraph
7
shall
supplant
an
equal
amount
of
the
appropriation
made
from
8
the
general
fund
of
the
state
pursuant
to
section
257.16
that
9
represents
the
increase
in
state
foundation
aid.
Any
moneys
10
remaining
at
the
conclusion
of
the
fiscal
year
beginning
July
11
1,
2024,
shall
be
transferred
by
the
department
of
management
12
for
deposit
in
the
general
fund
of
the
state.
13
Sec.
25.
Section
257.16A,
subsections
2
and
3,
Code
2025,
14
are
amended
to
read
as
follows:
15
2.
There
For
each
fiscal
year
beginning
before
July
1,
16
2026,
there
is
appropriated
annually
all
moneys
in
the
fund
to
17
the
department
of
management
for
purposes
of
section
257.15,
18
subsection
4
.
19
3.
Notwithstanding
section
8.33
,
any
moneys
remaining
in
20
the
property
tax
equity
and
relief
fund
at
the
end
of
a
fiscal
21
year
shall
not
revert
to
any
other
fund
but
shall
remain
in
the
22
property
tax
equity
and
relief
fund
for
use
as
provided
in
this
23
section
for
the
following
fiscal
year.
However,
at
the
end
of
24
the
fiscal
year
beginning
July
1,
2025,
any
moneys
remaining
in
25
the
property
tax
equity
and
relief
fund
shall
be
transferred
26
for
deposit
into
either
the
secure
an
advanced
vision
for
27
education
fund
or
the
general
fund
of
the
state
based
on
the
28
fund
from
which
the
moneys
were
received.
29
Sec.
26.
Section
257.16B,
subsection
1,
Code
2025,
is
30
amended
to
read
as
follows:
31
1.
For
each
fiscal
year
beginning
on
or
after
July
1,
2022,
32
but
before
July
1,
2026,
there
is
appropriated
from
the
general
33
fund
of
the
state
to
the
department
of
education
an
amount
34
necessary
to
make
all
school
district
property
tax
replacement
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payments
under
this
section
,
as
calculated
in
subsection
2
.
1
Sec.
27.
Section
257.16D,
subsection
2,
paragraph
a,
Code
2
2025,
is
amended
to
read
as
follows:
3
a.
There
For
fiscal
years
beginning
before
July
1,
2026,
4
there
is
appropriated
annually
from
the
fund
to
the
department
5
of
management
an
amount
necessary
to
make
all
foundation
base
6
supplement
payments
under
this
section
.
The
department
of
7
management
shall
calculate
each
school
district’s
foundation
8
base
supplement
payment
based
on
the
distribution
methodology
9
under
paragraph
“b”
.
10
Sec.
28.
Section
257.16D,
subsection
3,
Code
2025,
is
11
amended
to
read
as
follows:
12
3.
Notwithstanding
section
8.33
,
any
moneys
remaining
in
13
the
foundation
base
supplement
fund
at
the
end
of
a
fiscal
year
14
shall
not
revert
to
any
other
fund
but
shall
remain
in
the
15
foundation
base
supplement
fund
for
use
as
provided
in
this
16
section
for
the
following
fiscal
year.
However,
at
the
end
of
17
the
fiscal
year
beginning
July
1,
2025,
any
moneys
remaining
in
18
the
foundation
base
supplement
fund
shall
be
transferred
for
19
deposit
in
the
secure
an
advanced
vision
for
education
fund.
20
Sec.
29.
Section
257.31,
Code
2025,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
19.
a.
The
board
of
directors
of
each
23
school
district
with
an
unexpended
fund
balance
in
the
24
district’s
management
levy
fund
under
section
298A.3
at
the
25
conclusion
of
the
fiscal
year
beginning
July
1,
2024,
that
26
exceeds
an
amount
equal
to
the
total
expenditures
from
the
27
district’s
management
levy
fund
for
the
fiscal
year
beginning
28
July
1,
2024,
shall
certify
such
unexpended
fund
balance
and
29
expenditure
amounts,
including
any
reserved
or
designated
30
amounts
in
the
fund
and
the
purposes
therefor,
to
the
school
31
budget
review
committee
by
November
15,
2025.
The
committee
32
shall
prescribe
the
form
for
such
certifications.
33
b.
The
committee
shall
conduct
a
review
of
the
unexpended
34
fund
balances
and
expenditures
of
school
district
management
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levy
funds
certified
under
paragraph
“a”
.
The
committee
1
shall
consult
with
boards
of
directors
of
school
districts
2
and
other
relevant
persons
to
determine
the
appropriateness
3
of
establishing
district
management
levy
fund
unexpended
fund
4
balance
limitations.
By
February
1,
2026,
the
committee
5
shall
make
recommendations
to
the
general
assembly
for
6
establishing
district
management
levy
fund
unexpended
fund
7
balance
limitations
for
fiscal
years
beginning
on
or
after
July
8
1,
2027,
including
recommendations
for
limitations
based
on
a
9
percentage
of
the
district’s
management
levy
fund
expenditures
10
and
recommendations
for
management
levy
limitations
and
11
expenditure
requirements
for
excess
funds.
12
Sec.
30.
Section
298.2,
subsection
1,
Code
2025,
is
amended
13
to
read
as
follows:
14
1.
a.
A
physical
plant
and
equipment
levy
of
not
exceeding
15
one
dollar
and
sixty-seven
eighteen
cents
per
thousand
dollars
16
of
assessed
valuation
in
the
district
is
established
except
17
as
otherwise
provided
in
this
subsection
.
The
physical
plant
18
and
equipment
levy
consists
of
the
regular
physical
plant
and
19
equipment
levy
of
not
exceeding
thirty-three
twenty-four
cents
20
per
thousand
dollars
of
assessed
valuation
in
the
district
21
and
a
voter-approved
physical
plant
and
equipment
levy
of
22
not
exceeding
one
dollar
and
thirty-four
ninety-four
cents
23
per
thousand
dollars
of
assessed
valuation
in
the
district.
24
However,
the
voter-approved
physical
plant
and
equipment
levy
25
may
consist
of
a
combination
of
a
physical
plant
and
equipment
26
property
tax
levy
and
a
physical
plant
and
equipment
income
27
surtax
as
provided
in
subsection
4
with
the
maximum
amount
28
levied
and
imposed
limited
to
an
amount
that
could
be
raised
29
by
a
one
dollar
and
thirty-four
ninety-four
cent
property
tax
30
levy.
A
voter-approved
physical
plant
and
equipment
levy
31
approved
prior
to
the
effective
date
of
this
division
of
this
32
Act
shall
not
exceed
a
rate
that
is
seventy
percent
of
the
rate
33
approved
at
election.
34
b.
For
school
budget
years
beginning
on
or
after
July
1,
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2015
2026
,
a
school
district
may
by
resolution
of
the
board
of
1
directors
adopted
prior
to
April
30
preceding
the
budget
year
2
impose
a
physical
plant
and
equipment
levy
at
a
rate
in
excess
3
of
the
levy
rate
limitations
under
paragraph
“a”
if
the
board
4
has
refunded
or
refinanced
a
loan
agreement
entered
into
under
5
section
297.36
and
such
refunding
or
refinancing
complies
with
6
the
maturity
period
authorized
under
section
297.36,
subsection
7
1
,
paragraph
“c”
,
and
results
in
a
lower
amount
of
interest
on
8
the
amount
of
the
loan
agreement.
However,
the
rate
imposed
9
by
a
school
district
under
this
paragraph
shall
not
exceed
the
10
rate
imposed
during
the
budget
year
in
which
the
loan
agreement
11
was
refunded
or
refinanced
or
seventy
percent
of
such
levy
12
rate
if
the
refunding
or
refinancing
occurred
in
the
budget
13
year
beginning
July
1,
2025
.
Authorization
to
exceed
the
levy
14
rate
limitations
of
paragraph
“a”
shall
terminate
upon
the
15
maturity
of
the
loan
agreement
after
refunding
or
refinancing.
16
Upon
adoption
of
the
resolution
under
this
paragraph
“b”
,
the
17
board
shall
comply
with
the
requirements
of
section
297.36,
18
subsection
1
,
paragraph
“b”
.
19
Sec.
31.
Section
298.2,
subsection
2,
Code
2025,
is
amended
20
by
striking
the
subsection.
21
Sec.
32.
Section
298.4,
subsection
1,
unnumbered
paragraph
22
1,
Code
2025,
is
amended
to
read
as
follows:
23
The
Unless
prohibited
by
subsection
1A,
paragraph
“a”
,
the
24
board
of
directors
of
a
school
district
may
certify
for
levy
by
25
April
30
of
a
school
year,
a
tax
on
all
taxable
property
in
the
26
school
district
for
a
district
management
levy
,
subject
to
the
27
limitations
in
subsection
1A,
paragraph
“b”
.
The
revenue
from
28
the
tax
levied
in
this
section
shall
be
placed
in
the
district
29
management
levy
fund
of
the
school
district.
The
district
30
management
levy
shall
be
expended
only
for
the
following
31
purposes:
32
Sec.
33.
Section
298.4,
Code
2025,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
1A.
a.
(1)
For
the
fiscal
year
beginning
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July
1,
2027,
if
a
school
district’s
unexpended
fund
balance,
1
as
defined
in
section
257.2,
of
the
district’s
management
levy
2
fund
is
equal
to
or
exceeds
one
hundred
eighty
percent
of
the
3
average
annual
expenditures
from
the
district’s
management
4
levy
fund
for
the
three
consecutive
fiscal
years
immediately
5
preceding
the
base
year,
the
board
of
directors
shall
not
6
certify
a
levy
under
this
section
for
the
fiscal
year.
7
(2)
For
the
fiscal
year
beginning
July
1,
2028,
if
a
school
8
district’s
unexpended
fund
balance,
as
defined
in
section
9
257.2,
of
the
district’s
management
levy
fund
is
equal
to
or
10
exceeds
one
hundred
seventy-five
percent
of
the
average
annual
11
expenditures
from
the
district’s
management
levy
fund
for
the
12
three
consecutive
fiscal
years
immediately
preceding
the
base
13
year,
the
board
of
directors
shall
not
certify
a
levy
under
14
this
section
for
the
fiscal
year.
15
(3)
For
the
fiscal
year
beginning
July
1,
2029,
if
a
school
16
district’s
unexpended
fund
balance,
as
defined
in
section
17
257.2,
of
the
district’s
management
levy
fund
is
equal
to
or
18
exceeds
one
hundred
seventy
percent
of
the
average
annual
19
expenditures
from
the
district’s
management
levy
fund
for
the
20
three
consecutive
fiscal
years
immediately
preceding
the
base
21
year,
the
board
of
directors
shall
not
certify
a
levy
under
22
this
section
for
the
fiscal
year.
23
(4)
For
the
fiscal
year
beginning
July
1,
2030,
if
a
school
24
district’s
unexpended
fund
balance,
as
defined
in
section
25
257.2,
of
the
district’s
management
levy
fund
is
equal
to
or
26
exceeds
one
hundred
sixty-five
percent
of
the
average
annual
27
expenditures
from
the
district’s
management
levy
fund
for
the
28
three
consecutive
fiscal
years
immediately
preceding
the
base
29
year,
the
board
of
directors
shall
not
certify
a
levy
under
30
this
section
for
the
fiscal
year.
31
(5)
For
the
fiscal
year
beginning
July
1,
2031,
and
each
32
succeeding
fiscal
year,
if
a
school
district’s
unexpended
33
fund
balance,
as
defined
in
section
257.2,
of
the
district’s
34
management
levy
fund
is
equal
to
or
exceeds
one
hundred
sixty
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percent
of
the
average
annual
expenditures
from
the
district’s
1
management
levy
fund
for
the
three
consecutive
fiscal
years
2
immediately
preceding
the
base
year,
the
board
of
directors
3
shall
not
certify
a
levy
under
this
section
for
the
fiscal
4
year.
5
b.
(1)
For
the
fiscal
year
beginning
July
1,
2027,
if
6
a
school
district
is
not
prohibited
from
certifying
a
levy
7
pursuant
to
paragraph
“a”
,
the
maximum
amount
that
the
board
of
8
directors
may
certify
for
levy
under
this
section
shall
be
an
9
amount
equal
to
the
remainder
of
one
hundred
eighty
percent
of
10
the
average
annual
expenditures
from
the
district’s
management
11
levy
fund
for
the
three
consecutive
fiscal
years
immediately
12
preceding
the
base
year
minus
the
district’s
management
levy
13
fund
unexpended
fund
balance
for
the
fiscal
year
preceding
the
14
base
year.
15
(2)
For
the
fiscal
year
beginning
July
1,
2028,
if
a
school
16
district
is
not
prohibited
from
certifying
a
levy
pursuant
to
17
paragraph
“a”
,
the
maximum
amount
that
the
board
of
directors
18
may
certify
for
levy
under
this
section
shall
be
an
amount
19
equal
to
the
remainder
of
one
hundred
seventy-five
percent
of
20
the
average
annual
expenditures
from
the
district’s
management
21
levy
fund
for
the
three
consecutive
fiscal
years
immediately
22
preceding
the
base
year
minus
the
district’s
management
levy
23
fund
unexpended
fund
balance
for
the
fiscal
year
preceding
the
24
base
year.
25
(3)
For
the
fiscal
year
beginning
July
1,
2029,
if
a
school
26
district
is
not
prohibited
from
certifying
a
levy
pursuant
to
27
paragraph
“a”
,
the
maximum
amount
that
the
board
of
directors
28
may
certify
for
levy
under
this
section
shall
be
an
amount
29
equal
to
the
remainder
of
one
hundred
seventy
percent
of
the
30
average
annual
expenditures
from
the
district’s
management
31
levy
fund
for
the
three
consecutive
fiscal
years
immediately
32
preceding
the
base
year
minus
the
district’s
management
levy
33
fund
unexpended
fund
balance
for
the
fiscal
year
preceding
the
34
base
year.
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(4)
For
the
fiscal
year
beginning
July
1,
2030,
if
a
school
1
district
is
not
prohibited
from
certifying
a
levy
pursuant
to
2
paragraph
“a”
,
the
maximum
amount
that
the
board
of
directors
3
may
certify
for
levy
under
this
section
shall
be
an
amount
4
equal
to
the
remainder
of
one
hundred
sixty-five
percent
of
5
the
average
annual
expenditures
from
the
district’s
management
6
levy
fund
for
the
three
consecutive
fiscal
years
immediately
7
preceding
the
base
year
minus
the
district’s
management
levy
8
fund
unexpended
fund
balance
for
the
fiscal
year
preceding
the
9
base
year.
10
(5)
For
the
fiscal
year
beginning
July
1,
2031,
and
each
11
succeeding
fiscal
year,
if
a
school
district
is
not
prohibited
12
from
certifying
a
levy
pursuant
to
paragraph
“a”
,
the
maximum
13
amount
that
the
board
of
directors
may
certify
for
levy
under
14
this
section
shall
be
an
amount
equal
to
the
remainder
of
one
15
hundred
sixty
percent
of
the
average
annual
expenditures
from
16
the
district’s
management
levy
fund
for
the
three
consecutive
17
fiscal
years
immediately
preceding
the
base
year
minus
the
18
district’s
management
levy
fund
unexpended
fund
balance
for
the
19
fiscal
year
preceding
the
base
year.
20
Sec.
34.
Section
298.18,
subsection
1,
paragraph
d,
Code
21
2025,
is
amended
to
read
as
follows:
22
d.
The
amount
estimated
and
certified
to
apply
on
principal
23
and
interest
for
any
one
year
may
exceed
two
dollars
and
24
seventy
one
dollar
and
eighty-nine
cents
per
thousand
dollars
25
of
assessed
value
by
the
amount
approved
by
the
voters
of
the
26
school
corporation,
but
not
exceeding
four
two
dollars
and
five
27
eighty-four
cents
per
thousand
dollars
of
the
assessed
value
of
28
the
taxable
property
within
any
school
corporation,
provided
29
that
the
registered
voters
of
such
school
corporation
have
30
first
approved
such
increased
amount
at
an
election
held
on
a
31
date
specified
in
section
39.2,
subsection
4
,
paragraph
“c”
.
32
Amounts
approved
at
election
before
the
effective
date
of
this
33
division
of
this
Act
shall
not
exceed
a
rate
that
is
seventy
34
percent
of
the
rate
approved
at
election.
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Sec.
35.
Section
423F.2,
subsection
3,
paragraph
b,
1
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
2
(1)
Prior
to
distribution
of
moneys
in
the
secure
an
3
advanced
vision
for
education
fund
to
school
districts,
an
4
amount
equal
to
the
equity
transfer
amount
for
the
fiscal
year
5
minus
the
foundation
base
transfer
amount
for
the
fiscal
year
6
shall
be
distributed
and
credited
to
the
property
tax
equity
7
and
relief
fund
created
in
section
257.16A
,
an
amount
equal
8
to
the
foundation
base
transfer
amount
shall
be
distributed
9
and
credited
to
the
foundation
base
supplement
fund
created
10
in
section
257.16D
,
general
fund
of
the
state
to
be
used
for
11
foundation
aid
resulting
from
the
increase
in
the
regular
12
program
foundation
base
per
pupil
to
one
hundred
percent
of
the
13
regular
program
state
cost
per
pupil
and
an
amount
equal
to
14
the
career
academy
transfer
amount
for
the
fiscal
year
shall
15
be
distributed
and
credited
to
the
career
academy
fund
created
16
in
section
257.51
.
17
Sec.
36.
Section
423F.2,
subsection
3,
paragraph
b,
18
subparagraph
(3),
Code
2025,
is
amended
by
striking
the
19
subparagraph.
20
Sec.
37.
Section
423F.3,
subsection
1,
paragraph
a,
Code
21
2025,
is
amended
to
read
as
follows:
22
a.
Reduction
of
the
bond
levies
levy
under
sections
section
23
298.18
and
298.18A
and
all
other
debt
levies.
24
Sec.
38.
Section
425A.3,
subsection
1,
Code
2025,
is
amended
25
to
read
as
follows:
26
1.
The
family
farm
tax
credit
fund
shall
be
apportioned
27
each
year
in
the
manner
provided
in
this
chapter
so
as
to
give
28
a
credit
against
the
tax
on
each
eligible
tract
of
agricultural
29
land
within
the
several
school
districts
of
the
state
in
which
30
the
levy
for
the
general
school
fund
exceeds
five
dollars
and
31
forty
cents
per
thousand
dollars
of
assessed
value
the
levy
32
rate
under
section
257.3,
subsection
1,
paragraph
“a”
.
The
33
amount
of
the
credit
on
each
eligible
tract
of
agricultural
34
land
shall
be
the
amount
the
tax
levied
for
the
general
school
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fund
exceeds
the
amount
of
tax
which
would
be
levied
on
each
1
eligible
tract
of
agricultural
land
were
the
levy
for
the
2
general
school
fund
five
dollars
and
forty
cents
per
thousand
3
dollars
of
assessed
value
the
levy
rate
under
section
257.3,
4
subsection
1,
paragraph
“a”
,
for
the
previous
year.
However,
5
in
the
case
of
a
deficiency
in
the
family
farm
tax
credit
fund
6
to
pay
the
credits
in
full,
the
credit
on
each
eligible
tract
7
of
agricultural
land
in
the
state
shall
be
proportionate
and
8
applied
as
provided
in
this
chapter
.
9
Sec.
39.
Section
425A.5,
Code
2025,
is
amended
to
read
as
10
follows:
11
425A.5
Computation
by
county
auditor.
12
The
family
farm
tax
credit
allowed
each
year
shall
be
13
computed
as
follows:
On
or
before
April
1,
the
county
auditor
14
shall
list
by
school
districts
all
tracts
of
agricultural
15
land
which
are
entitled
to
credit,
the
taxable
value
for
the
16
previous
year,
the
budget
from
each
school
district
for
the
17
previous
year,
and
the
tax
rate
determined
for
the
general
18
fund
of
the
school
district
in
the
manner
prescribed
in
19
section
444.3
for
the
previous
year,
and
if
the
tax
rate
is
in
20
excess
of
five
dollars
and
forty
cents
per
thousand
dollars
of
21
assessed
value
the
levy
rate
under
section
257.3,
subsection
22
1,
paragraph
“a”
,
the
auditor
shall
multiply
the
tax
levy
which
23
is
in
excess
of
five
dollars
and
forty
cents
per
thousand
24
dollars
of
assessed
value
the
levy
rate
under
section
257.3,
25
subsection
1,
paragraph
“a”
,
by
the
total
taxable
value
of
the
26
agricultural
land
entitled
to
credit
in
the
school
district,
27
and
on
or
before
April
1,
certify
the
total
amount
of
credit
28
and
the
total
number
of
acres
entitled
to
the
credit
to
the
29
department
of
revenue.
30
Sec.
40.
Section
426.3,
Code
2025,
is
amended
to
read
as
31
follows:
32
426.3
Where
credit
given.
33
The
agricultural
land
credit
fund
shall
be
apportioned
each
34
year
in
the
manner
hereinafter
provided
so
as
to
give
a
credit
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against
the
tax
on
each
tract
of
agricultural
lands
within
the
1
several
school
districts
of
the
state
in
which
the
levy
for
2
the
general
school
fund
exceeds
five
dollars
and
forty
cents
3
per
thousand
dollars
of
assessed
value
the
levy
rate
under
4
section
257.3,
subsection
1,
paragraph
“a”
;
the
amount
of
such
5
credit
on
each
tract
of
such
lands
shall
be
the
amount
the
tax
6
levied
for
the
general
school
fund
exceeds
the
amount
of
tax
7
which
would
be
levied
on
said
tract
of
such
lands
were
the
8
levy
for
the
general
school
fund
five
dollars
and
forty
cents
9
per
thousand
dollars
of
assessed
value
the
levy
rate
under
10
section
257.3,
subsection
1,
paragraph
“a”
,
for
the
previous
11
year,
except
in
the
case
of
a
deficiency
in
the
agricultural
12
land
credit
fund
to
pay
said
credits
in
full,
in
which
case
the
13
credit
on
each
eligible
tract
of
such
lands
in
the
state
shall
14
be
proportionate
and
shall
be
applied
as
hereinafter
provided.
15
Sec.
41.
Section
426.6,
subsection
1,
Code
2025,
is
amended
16
to
read
as
follows:
17
1.
The
agricultural
land
tax
credit
allowed
each
year
18
shall
be
computed
as
follows:
On
or
before
April
1,
the
19
county
auditor
shall
list
by
school
districts
all
tracts
of
20
agricultural
lands
which
are
entitled
to
credit,
together
with
21
the
taxable
value
for
the
previous
year,
together
with
the
22
budget
from
each
school
district
for
the
previous
year,
and
the
23
tax
rate
determined
for
the
general
fund
of
the
district
in
24
the
manner
prescribed
in
section
444.3
for
the
previous
year,
25
and
if
such
tax
rate
is
in
excess
of
five
dollars
and
forty
26
cents
per
thousand
dollars
of
assessed
value
the
levy
rate
27
under
section
257.3,
subsection
1,
paragraph
“a”
,
the
auditor
28
shall
multiply
the
tax
levy
which
is
in
excess
of
five
dollars
29
and
forty
cents
per
thousand
dollars
of
assessed
value
the
30
levy
rate
under
section
257.3,
subsection
1,
paragraph
“a”
,
by
31
the
total
taxable
value
of
the
agricultural
lands
entitled
to
32
credit
in
the
district,
and
on
or
before
April
1,
certify
the
33
amount
to
the
department
of
revenue.
34
Sec.
42.
REPEAL.
Section
298.18A,
Code
2025,
is
repealed.
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Sec.
43.
ADJUSTMENT
OF
CALCULATIONS.
For
property
tax
1
credits
under
chapters
425A
and
426
for
property
taxes
due
and
2
payable
in
the
fiscal
year
beginning
July
1,
2026,
the
tax
rate
3
determined
for
the
general
fund
of
the
school
district
in
the
4
manner
prescribed
in
section
444.3
for
the
previous
year
shall
5
be
determined
using
the
appropriate
property
tax
levy
rate
6
under
section
257.3,
as
amended
in
this
division
of
this
Act.
7
Sec.
44.
EFFECTIVE
DATE.
Except
for
the
section
of
this
8
division
of
this
Act
amending
section
257.31,
this
division
of
9
this
Act
takes
effect
January
1,
2026.
10
Sec.
45.
APPLICABILITY.
Except
for
the
section
of
this
11
division
of
this
Act
amending
section
257.31,
this
division
12
of
this
Act
applies
to
fiscal
years
and
school
budget
years
13
beginning
on
or
after
July
1,
2026.
14
DIVISION
IV
15
PROPERTY
CLASSIFICATIONS,
VALUATIONS,
AND
ASSESSMENT
16
LIMITATIONS
17
Sec.
46.
Section
386.8,
Code
2025,
is
amended
to
read
as
18
follows:
19
386.8
Operation
tax.
20
A
city
may
establish
a
self-supported
improvement
district
21
operation
fund,
and
may
certify
taxes
not
to
exceed
the
22
rate
limitation
as
established
in
the
ordinance
creating
the
23
district,
or
any
amendment
thereto,
each
year
to
be
levied
24
for
the
fund
against
all
of
the
property
in
the
district,
25
for
the
purpose
of
paying
the
administrative
expenses
of
26
the
district,
which
may
include
but
are
not
limited
to
27
administrative
personnel
salaries,
a
separate
administrative
28
office,
planning
costs
including
consultation
fees,
engineering
29
fees,
architectural
fees,
and
legal
fees
and
all
other
expenses
30
reasonably
associated
with
the
administration
of
the
district
31
and
the
fulfilling
of
the
purposes
of
the
district.
The
taxes
32
levied
for
this
fund
may
also
be
used
for
the
purpose
of
paying
33
maintenance
expenses
of
improvements
or
self-liquidating
34
improvements
for
a
specified
length
of
time
with
one
or
more
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options
to
renew
if
such
is
clearly
stated
in
the
petition
1
which
requests
the
council
to
authorize
construction
of
the
2
improvement
or
self-liquidating
improvement,
whether
or
not
3
such
petition
is
combined
with
the
petition
requesting
creation
4
of
a
district.
Parcels
of
property
which
are
assessed
as
5
residential
property
for
property
tax
purposes
are
exempt
from
6
the
tax
levied
under
this
section
except
residential
properties
7
within
a
duly
designated
historic
district
or
property
8
classified
as
residential
multiresidential
property
under
9
section
441.21,
subsection
14
13
,
paragraph
“a”
,
subparagraph
10
(6)
(5)
.
A
tax
levied
under
this
section
is
not
subject
to
the
11
levy
limitation
in
section
384.1
.
12
Sec.
47.
Section
386.9,
Code
2025,
is
amended
to
read
as
13
follows:
14
386.9
Capital
improvement
tax.
15
A
city
may
establish
a
capital
improvement
fund
for
a
16
district
and
may
certify
taxes,
not
to
exceed
the
rate
17
established
by
the
ordinance
creating
the
district,
or
any
18
subsequent
amendment
thereto,
each
year
to
be
levied
for
19
the
fund
against
all
of
the
property
in
the
district,
for
20
the
purpose
of
accumulating
moneys
for
the
financing
or
21
payment
of
a
part
or
all
of
the
costs
of
any
improvement
or
22
self-liquidating
improvement.
However,
parcels
of
property
23
which
are
assessed
as
residential
property
for
property
tax
24
purposes
are
exempt
from
the
tax
levied
under
this
section
25
except
residential
properties
within
a
duly
designated
historic
26
district
or
property
classified
as
residential
multiresidential
27
property
under
section
441.21,
subsection
14
13
,
paragraph
“a”
,
28
subparagraph
(6)
(5)
.
A
tax
levied
under
this
section
is
not
29
subject
to
the
levy
limitations
in
section
384.1
or
384.7
.
30
Sec.
48.
Section
386.10,
Code
2025,
is
amended
to
read
as
31
follows:
32
386.10
Debt
service
tax.
33
A
city
shall
establish
a
self-supported
municipal
34
improvement
district
debt
service
fund
whenever
any
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self-supported
municipal
improvement
district
bonds
are
issued
1
and
outstanding,
other
than
revenue
bonds,
and
shall
certify
2
taxes
to
be
levied
against
all
of
the
property
in
the
district
3
for
the
debt
service
fund
in
the
amount
necessary
to
pay
4
interest
as
it
becomes
due
and
the
amount
necessary
to
pay,
5
or
to
create
a
sinking
fund
to
pay,
the
principal
at
maturity
6
of
all
self-supported
municipal
improvement
district
bonds
as
7
authorized
in
section
386.11
,
issued
by
the
city.
However,
8
parcels
of
property
which
are
assessed
as
residential
property
9
for
property
tax
purposes
at
the
time
of
the
issuance
of
the
10
bonds
are
exempt
from
the
tax
levied
under
this
section
until
11
the
parcels
are
no
longer
assessed
as
residential
property
12
or
until
the
residential
properties
are
designated
as
a
part
13
of
a
historic
district
or
property
classified
as
residential
14
multiresidential
property
under
section
441.21,
subsection
14
15
13
,
paragraph
“a”
,
subparagraph
(6)
(5)
.
16
Sec.
49.
Section
404.2,
subsection
2,
paragraph
f,
Code
17
2025,
is
amended
to
read
as
follows:
18
f.
A
statement
specifying
whether
the
revitalization
is
19
applicable
to
none,
some,
or
all
of
the
property
assessed
as
20
residential,
multiresidential,
agricultural,
commercial,
or
21
industrial
property
within
the
designated
area
or
a
combination
22
thereof
and
whether
the
revitalization
is
for
rehabilitation
23
and
additions
to
existing
buildings
or
new
construction
or
24
both.
If
revitalization
is
made
applicable
only
to
some
25
property
within
an
assessment
classification,
the
definition
of
26
that
subset
of
eligible
property
must
be
by
uniform
criteria
27
which
further
some
planning
objective
identified
in
the
plan.
28
The
city
shall
state
how
long
it
is
estimated
that
the
area
29
shall
remain
a
designated
revitalization
area
which
time
30
shall
be
longer
than
one
year
from
the
date
of
designation
31
and
shall
state
any
plan
by
the
city
to
issue
revenue
bonds
32
for
revitalization
projects
within
the
area.
For
a
county,
33
a
revitalization
area
shall
include
only
property
which
34
will
be
used
as
industrial
property,
commercial
property,
35
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multiresidential
property,
or
residential
property.
However,
a
1
county
shall
not
provide
a
tax
exemption
under
this
chapter
to
2
commercial
property
,
multiresidential
property,
or
residential
3
property
which
is
located
within
the
limits
of
a
city.
4
Sec.
50.
Section
404.3,
subsection
4,
paragraph
a,
Code
5
2025,
is
amended
by
striking
the
paragraph
and
inserting
in
6
lieu
thereof
the
following:
7
a.
All
qualified
real
estate
assessed
as
any
of
the
8
following
is
eligible
to
receive
a
one
hundred
percent
9
exemption
from
taxation
on
the
actual
value
added
by
the
10
improvements:
11
(1)
Residential
property.
12
(2)
Commercial
property
if
the
commercial
property
13
consists
of
three
or
more
separate
living
quarters
with
at
14
least
seventy-five
percent
of
the
space
used
for
residential
15
purposes.
16
(3)
Multiresidential
property
if
the
multiresidential
17
property
consists
of
three
or
more
separate
living
quarters
18
with
at
least
seventy-five
percent
of
the
space
used
for
19
residential
purposes.
20
Sec.
51.
Section
404.3A,
Code
2025,
is
amended
to
read
as
21
follows:
22
404.3A
Residential
development
area
exemption.
23
Notwithstanding
the
schedules
provided
for
in
section
404.3
,
24
all
qualified
real
estate
assessed
as
residential
property
or
25
multiresidential
property
,
excluding
property
classified
as
26
residential
multiresidential
property
under
section
441.21,
27
subsection
14
13
,
paragraph
“a”
,
subparagraph
(6)
(5)
,
in
an
28
area
designated
under
section
404.1,
subsection
5
,
is
eligible
29
to
receive
an
exemption
from
taxation
on
the
first
seventy-five
30
thousand
dollars
of
actual
value
added
by
the
improvements.
31
The
exemption
is
for
a
period
of
five
years.
32
Sec.
52.
Section
404.3D,
Code
2025,
is
amended
to
read
as
33
follows:
34
404.3D
Exemptions
for
residential
and
multiresidential
35
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property.
1
For
revitalization
areas
established
under
this
chapter
2
on
or
after
July
1,
2024,
and
for
first-year
exemption
3
applications
for
property
located
in
a
revitalization
area
in
4
existence
on
July
1,
2024,
filed
on
or
after
July
1,
2024,
an
5
exemption
authorized
under
this
chapter
for
property
that
is
6
residential
property
or
multiresidential
property
shall
not
7
apply
to
property
tax
levies
imposed
by
a
school
district.
8
Sec.
53.
Section
441.21,
subsection
1,
paragraph
b,
9
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
10
(1)
The
actual
value
of
all
property
subject
to
assessment
11
and
taxation
shall
be
the
fair
and
reasonable
market
value
of
12
such
property
except
as
otherwise
provided
in
this
section
.
13
“Market
value”
is
defined
as
the
fair
and
reasonable
exchange
14
in
the
year
in
which
the
property
is
listed
and
valued
between
15
a
willing
buyer
and
a
willing
seller,
neither
being
under
any
16
compulsion
to
buy
or
sell
and
each
being
familiar
with
all
17
the
facts
relating
to
the
particular
property.
Sale
prices
18
of
the
property
or
comparable
property
in
normal
transactions
19
reflecting
market
value,
and
the
probable
availability
20
or
unavailability
of
persons
interested
in
purchasing
the
21
property,
shall
be
taken
into
consideration
in
arriving
at
22
its
market
value.
In
arriving
at
market
value,
sale
prices
23
of
property
in
abnormal
transactions
not
reflecting
market
24
value
shall
not
be
taken
into
account,
or
shall
be
adjusted
to
25
eliminate
the
effect
of
factors
which
distort
market
value,
26
including
but
not
limited
to
built-to-suit
construction,
27
sale-leaseback
transactions,
leased
fee
sales,
sales
to
28
immediate
family
of
the
seller
between
related
parties
,
29
foreclosure
or
other
forced
sales,
contract
sales,
discounted
30
purchase
transactions
or
purchase
of
adjoining
land
or
other
31
land
to
be
operated
as
a
unit.
32
Sec.
54.
Section
441.21,
subsection
1,
paragraph
e,
Code
33
2025,
is
amended
to
read
as
follows:
34
e.
The
actual
value
of
agricultural
property
shall
be
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determined
on
the
basis
of
productivity
and
net
earning
1
capacity
of
the
property
determined
on
the
basis
of
its
use
for
2
agricultural
purposes
capitalized
at
a
rate
of
seven
percent
3
and
applied
uniformly
among
counties
and
among
classes
of
4
property.
However,
for
assessment
years
beginning
on
or
after
5
January
1,
2026,
structures
on
agricultural
land
constructed
on
6
or
after
January
1,
2026,
that
are
not
agricultural
dwellings
7
shall
not
be
included
in
determination
of
productivity
and
8
net
earning
capacity
of
agricultural
property
and
shall
not
9
be
allocated
any
portion
of
the
total
county
productivity
10
value
so
determined.
However,
such
structures
shall
be
11
treated
similarly
to
agricultural
structures
constructed
12
before
January
1,
2026,
when
applying
any
equalization
13
order
of
the
department.
Such
agricultural
structures
shall
14
instead
be
valued
according
to
the
structure’s
replacement
15
cost
less
depreciation
and
obsolescence
and
the
structure’s
16
assessed
value
subject
to
taxation
prior
to
application
of
any
17
assessment
limitation
under
subsection
4
shall
be
equal
to
the
18
product
of
the
structure’s
value
multiplied
by
the
agricultural
19
factor,
as
determined
in
701
IAC
102.3(2)
or
succeeding
rule
of
20
the
department.
Any
formula
or
method
employed
to
determine
21
productivity
and
net
earning
capacity
of
property
shall
be
22
adopted
in
full
by
rule.
23
Sec.
55.
Section
441.21,
subsection
2,
Code
2025,
is
amended
24
to
read
as
follows:
25
2.
In
the
event
market
value
of
the
property
being
assessed
26
cannot
be
readily
established
in
the
foregoing
manner,
then
27
the
assessor
may
determine
the
value
of
the
property
using
the
28
other
uniform
and
recognized
appraisal
methods
including
its
29
productive
and
earning
capacity,
if
any,
industrial
conditions,
30
its
cost,
physical
and
functional
depreciation
and
obsolescence
31
and
replacement
cost,
and
all
other
factors
which
would
assist
32
in
determining
the
fair
and
reasonable
market
value
of
the
33
property
but
the
actual
value
shall
not
be
determined
by
use
34
of
only
one
such
factor.
The
following
shall
not
be
taken
into
35
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consideration:
Special
value
or
use
value
of
the
property
to
1
its
present
owner,
and
the
goodwill
or
value
of
a
business
2
which
uses
the
property
as
distinguished
from
the
value
of
3
the
property
as
property.
In
addition,
for
assessment
years
4
beginning
on
or
after
January
1,
2018,
and
unless
otherwise
5
required
for
property
valued
by
the
department
of
revenue
6
pursuant
to
chapters
428
,
437
,
and
438
,
the
assessor
shall
not
7
take
into
consideration
and
shall
not
request
from
any
person
8
sales
or
receipts
data,
expense
data,
balance
sheets,
bank
9
account
information,
or
other
data
related
to
the
financial
10
condition
of
a
business
operating
in
whole
or
in
part
on
the
11
property
if
the
property
is
both
classified
as
commercial
or
12
industrial
property
and
owned
and
used
by
the
owner
of
the
13
business.
However,
in
assessing
property
that
is
rented
or
14
leased
to
low-income
individuals
and
families
as
authorized
by
15
section
42
of
the
Internal
Revenue
Code,
as
amended,
and
which
16
section
limits
the
amount
that
the
individual
or
family
pays
17
for
the
rental
or
lease
of
units
in
the
property,
the
assessor
18
shall,
unless
the
owner
elects
to
withdraw
the
property
from
19
the
assessment
procedures
for
section
42
property,
use
the
20
productive
and
earning
capacity
from
the
actual
rents
received
21
as
a
method
of
appraisal
and
shall
take
into
account
the
extent
22
to
which
that
use
and
limitation
reduces
the
market
value
of
23
the
property.
The
assessor
shall
not
consider
any
tax
credit
24
equity
or
other
subsidized
financing
as
income
provided
to
25
the
property
in
determining
the
assessed
value.
The
property
26
owner
shall
notify
the
assessor
when
property
is
withdrawn
27
from
section
42
eligibility
under
the
Internal
Revenue
Code
28
or
if
the
owner
elects
to
withdraw
the
property
from
the
29
assessment
procedures
for
section
42
property
under
this
30
subsection
.
The
property
shall
not
be
subject
to
section
42
31
assessment
procedures
for
the
assessment
year
for
which
section
32
42
eligibility
is
withdrawn
or
an
election
is
made.
This
33
notification
must
be
provided
to
the
assessor
no
later
than
34
March
1
of
the
assessment
year
or
the
owner
will
be
subject
to
a
35
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penalty
of
five
hundred
dollars
for
that
assessment
year.
The
1
penalty
shall
be
collected
at
the
same
time
and
in
the
same
2
manner
as
regular
property
taxes.
An
election
to
withdraw
3
from
the
assessment
procedures
for
section
42
property
is
4
irrevocable.
Property
that
is
withdrawn
from
the
assessment
5
procedures
for
section
42
property
shall
be
classified
and
6
assessed
as
residential
multiresidential
property
unless
the
7
property
otherwise
fails
to
meet
the
requirements
of
subsection
8
14
13
.
Upon
adoption
of
uniform
rules
by
the
department
of
9
revenue
or
succeeding
authority
covering
assessments
and
10
valuations
of
such
properties,
the
valuation
on
such
properties
11
shall
be
determined
in
accordance
with
such
rules
and
in
12
accordance
with
forms
and
guidelines
contained
in
the
real
13
property
appraisal
manual
prepared
by
the
department
as
updated
14
from
time
to
time
for
assessment
purposes
to
assure
uniformity,
15
but
such
rules,
forms,
and
guidelines
shall
not
be
inconsistent
16
with
or
change
the
foregoing
means
of
determining
the
actual,
17
market,
taxable,
and
assessed
values.
18
Sec.
56.
Section
441.21,
subsections
4
and
5,
Code
2025,
are
19
amended
to
read
as
follows:
20
4.
For
valuations
established
as
of
January
1,
1979
2025
,
21
the
percentage
of
actual
value
at
which
agricultural
and
22
residential
property
shall
be
assessed
shall
be
the
quotient
of
23
the
dividend
and
divisor
as
defined
in
this
section
determined
24
under
this
subsection
.
25
a.
(1)
The
percentage
of
actual
value
at
which
agricultural
26
property
shall
be
assessed
shall
be
the
quotient
of
the
27
dividend
and
divisor
as
defined
in
this
paragraph.
The
28
dividend
for
each
class
of
property
shall
be
the
dividend
29
as
determined
for
each
class
of
agricultural
property
30
for
valuations
established
as
of
January
1,
1978
2024
,
as
31
determined
under
the
applicable
law
for
that
assessment
year,
32
adjusted
by
the
product
obtained
by
multiplying
the
percentage
33
determined
for
that
year
by
the
amount
of
any
additions
or
34
deletions
to
actual
value,
excluding
those
resulting
from
35
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the
revaluation
of
existing
properties,
as
reported
by
the
1
assessors
on
the
abstracts
of
assessment
for
1978
2024
,
plus
2
six
three
percent
of
the
amount
so
determined.
3
(2)
However,
if
the
difference
between
the
dividend
so
4
determined
for
either
class
of
property
and
the
dividend
for
5
that
class
of
property
for
valuations
established
as
of
January
6
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
7
the
percentage
determined
for
that
year
by
the
amount
of
8
any
additions
or
deletions
to
actual
value,
excluding
those
9
resulting
from
the
revaluation
of
existing
properties,
as
10
reported
by
the
assessors
on
the
abstracts
of
assessment
for
11
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
other
12
class
of
property
shall
be
the
dividend
as
determined
for
that
13
class
of
property
for
valuations
established
as
of
January
14
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
15
the
percentage
determined
for
that
year
by
the
amount
of
16
any
additions
or
deletions
to
actual
value,
excluding
those
17
resulting
from
the
revaluation
of
existing
properties,
as
18
reported
by
the
assessors
on
the
abstracts
of
assessment
for
19
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
20
equal
to
the
percentage
by
which
the
dividend
as
determined
21
for
the
other
class
of
property
for
valuations
established
22
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
23
multiplying
the
percentage
determined
for
that
year
by
the
24
amount
of
any
additions
or
deletions
to
actual
value,
excluding
25
those
resulting
from
the
revaluation
of
existing
properties,
as
26
reported
by
the
assessors
on
the
abstracts
of
assessment
for
27
1978,
is
increased
in
arriving
at
the
1979
dividend
for
the
28
other
class
of
property.
29
(3)
For
valuations
established
for
assessment
years
30
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
31
dividend
for
residential
property
under
this
subsection
shall
32
exclude
the
value
of
all
property
described
in
subsection
14
,
33
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
34
and
the
property
described
in
subsection
14
,
paragraph
“a”
,
35
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subparagraph
(7),
that
contains
three
or
more
separate
dwelling
1
units.
2
b.
(1)
The
divisor
for
each
class
of
property
shall
be
3
the
total
actual
value
of
all
such
agricultural
property
in
4
the
state
in
the
preceding
year,
as
reported
by
the
assessors
5
on
the
abstracts
of
assessment
submitted
for
1978
2024
,
as
6
determined
under
the
applicable
law
for
that
assessment
year,
7
plus
the
amount
of
value
added
to
said
total
actual
value
8
by
the
revaluation
of
existing
properties
in
1979
2025
as
9
equalized
by
the
director
of
revenue
pursuant
to
section
10
441.49
.
The
director
shall
utilize
information
reported
on
11
abstracts
of
assessment
submitted
pursuant
to
section
441.45
12
in
determining
such
percentage.
For
valuations
established
as
13
of
January
1,
2026,
and
each
assessment
year
thereafter,
the
14
percentage
of
actual
value
as
equalized
by
the
department
of
15
revenue
as
provided
in
section
441.49
at
which
agricultural
16
property
shall
be
assessed
shall
be
calculated
in
accordance
17
with
the
methods
provided
in
this
paragraph.
18
(2)
For
valuations
established
for
assessment
years
19
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
20
divisor
for
residential
property
under
this
subsection
shall
21
exclude
the
value
of
all
property
described
in
subsection
14
,
22
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
23
and
the
property
described
in
subsection
14
,
paragraph
“a”
,
24
subparagraph
(7),
that
contains
three
or
more
separate
dwelling
25
units.
26
c.
(1)
For
valuations
established
as
of
January
1,
1980,
27
and
each
assessment
year
thereafter
beginning
before
January
28
1,
2013,
the
percentage
of
actual
value
as
equalized
by
the
29
director
of
revenue
as
provided
in
section
441.49
at
which
30
agricultural
and
residential
property
shall
be
assessed
shall
31
be
calculated
in
accordance
with
the
methods
provided
in
32
this
subsection
,
including
the
limitation
of
increases
in
33
agricultural
and
residential
assessed
values
to
the
percentage
34
increase
of
the
other
class
of
property
if
the
other
class
35
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increases
less
than
the
allowable
limit
adjusted
to
include
1
the
applicable
and
current
values
as
equalized
by
the
director
2
of
revenue,
except
that
any
references
to
six
percent
in
this
3
subsection
shall
be
four
percent.
4
(2)
For
valuations
established
as
of
January
1,
2013,
and
5
each
assessment
year
thereafter,
the
percentage
of
actual
6
value
as
equalized
by
the
department
of
revenue
as
provided
in
7
section
441.49
at
which
agricultural
and
residential
property
8
shall
be
assessed
shall
be
calculated
in
accordance
with
the
9
methods
provided
in
this
subsection
,
including
the
limitation
10
of
increases
in
agricultural
and
residential
assessed
values
to
11
the
percentage
increase
of
the
other
class
of
property
if
the
12
other
class
increases
less
than
the
allowable
limit
adjusted
13
to
include
the
applicable
and
current
values
as
equalized
by
14
the
department
of
revenue,
except
that
any
references
to
six
15
percent
in
this
subsection
shall
be
three
percent.
16
b.
(1)
For
valuations
established
for
the
assessment
year
17
beginning
January
1,
2024,
the
percentage
of
actual
value
18
as
equalized
by
the
department
of
revenue
as
provided
in
19
section
441.49
at
which
residential
property
shall
be
assessed
20
shall
be
forty-seven
and
four
thousand
three
hundred
sixteen
21
ten-thousandths
percent.
22
(2)
For
valuations
established
for
the
assessment
year
23
beginning
January
1,
2025,
and
the
assessment
year
beginning
24
January
1,
2026,
the
percentage
of
actual
value
as
equalized
25
by
the
department
of
revenue
as
provided
in
section
441.49
26
at
which
residential
property
shall
be
assessed
shall
be
27
seventy-five
percent.
28
(3)
For
valuations
established
for
the
assessment
year
29
beginning
January
1,
2027,
the
percentage
of
actual
value
as
30
equalized
by
the
department
of
revenue
as
provided
in
section
31
441.49
at
which
residential
property
shall
be
assessed
shall
be
32
seventy-seven
and
one-half
percent.
33
(4)
For
valuations
established
for
the
assessment
year
34
beginning
January
1,
2028,
the
percentage
of
actual
value
as
35
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equalized
by
the
department
of
revenue
as
provided
in
section
1
441.49
at
which
residential
property
shall
be
assessed
shall
2
be
eighty
percent.
3
(5)
For
valuations
established
for
the
assessment
year
4
beginning
January
1,
2029,
the
percentage
of
actual
value
as
5
equalized
by
the
department
of
revenue
as
provided
in
section
6
441.49
at
which
residential
property
shall
be
assessed
shall
be
7
eighty-two
and
one-half
percent.
8
(6)
For
valuations
established
for
the
assessment
year
9
beginning
January
1,
2030,
the
percentage
of
actual
value
as
10
equalized
by
the
department
of
revenue
as
provided
in
section
11
441.49
at
which
residential
property
shall
be
assessed
shall
12
be
eighty-five
percent.
13
(7)
For
valuations
established
for
the
assessment
year
14
beginning
January
1,
2031,
the
percentage
of
actual
value
as
15
equalized
by
the
department
of
revenue
as
provided
in
section
16
441.49
at
which
residential
property
shall
be
assessed
shall
be
17
eighty-seven
and
one-half
percent.
18
(8)
For
valuations
established
for
the
assessment
year
19
beginning
January
1,
2032,
the
percentage
of
actual
value
as
20
equalized
by
the
department
of
revenue
as
provided
in
section
21
441.49
at
which
residential
property
shall
be
assessed
shall
22
be
ninety
percent.
23
(9)
For
valuations
established
for
the
assessment
year
24
beginning
January
1,
2033,
the
percentage
of
actual
value
as
25
equalized
by
the
department
of
revenue
as
provided
in
section
26
441.49
at
which
residential
property
shall
be
assessed
shall
be
27
ninety-two
and
one-half
percent.
28
(10)
For
valuations
established
for
the
assessment
year
29
beginning
January
1,
2034,
the
percentage
of
actual
value
as
30
equalized
by
the
department
of
revenue
as
provided
in
section
31
441.49
at
which
residential
property
shall
be
assessed
shall
32
be
ninety-five
percent.
33
(11)
For
valuations
established
for
the
assessment
year
34
beginning
January
1,
2035,
the
percentage
of
actual
value
as
35
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651
equalized
by
the
department
of
revenue
as
provided
in
section
1
441.49
at
which
residential
property
shall
be
assessed
shall
be
2
ninety-seven
and
one-half
percent.
3
(12)
For
valuations
established
for
the
assessment
year
4
beginning
January
1,
2036,
and
each
assessment
year
thereafter,
5
the
percentage
of
actual
value
as
equalized
by
the
department
6
of
revenue
as
provided
in
section
441.49
at
which
residential
7
property
shall
be
assessed
shall
be
one
hundred
percent.
8
5.
a.
(1)
For
valuations
established
as
of
January
1,
9
1979,
property
valued
by
the
department
of
revenue
pursuant
to
10
chapter
437
shall
be
considered
as
one
class
of
property
and
11
shall
be
assessed
as
a
percentage
of
its
actual
value.
The
12
percentage
shall
be
determined
by
the
director
of
revenue
in
13
accordance
with
the
provisions
of
this
section
.
For
valuations
14
established
as
of
January
1,
1979,
the
percentage
shall
be
15
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
16
section
.
The
dividend
shall
be
the
total
actual
valuation
17
established
for
1978
by
the
department
of
revenue,
plus
ten
18
percent
of
the
amount
so
determined.
The
divisor
for
property
19
valued
by
the
department
of
revenue
pursuant
to
chapter
437
20
shall
be
the
valuation
established
for
1978,
plus
the
amount
of
21
value
added
to
the
total
actual
value
by
the
revaluation
of
the
22
property
by
the
department
of
revenue
as
of
January
1,
1979.
23
For
valuations
established
as
of
January
1,
1980,
property
24
valued
by
the
department
of
revenue
pursuant
to
chapter
437
25
shall
be
assessed
at
a
percentage
of
its
actual
value.
The
26
percentage
shall
be
determined
by
the
director
of
revenue
in
27
accordance
with
the
provisions
of
this
section
.
For
valuations
28
established
as
of
January
1,
1980,
the
percentage
shall
be
29
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
30
section
.
The
dividend
shall
be
the
total
actual
valuation
31
established
for
1979
by
the
department
of
revenue,
plus
eight
32
percent
of
the
amount
so
determined.
The
divisor
for
property
33
valued
by
the
department
of
revenue
pursuant
to
chapter
437
34
shall
be
the
valuation
established
for
1979,
plus
the
amount
of
35
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value
added
to
the
total
actual
value
by
the
revaluation
of
the
1
property
by
the
department
of
revenue
as
of
January
1,
1980.
2
For
valuations
established
as
of
January
1,
1981,
and
each
year
3
thereafter,
the
percentage
of
actual
value
at
which
property
4
valued
by
the
department
of
revenue
pursuant
to
chapter
437
5
shall
be
assessed
shall
be
calculated
in
accordance
with
the
6
methods
provided
herein,
except
that
any
references
to
ten
7
percent
in
this
subsection
shall
be
eight
percent.
8
(2)
(1)
For
valuations
established
on
or
after
January
1,
9
2013,
property
valued
by
the
department
of
revenue
pursuant
to
10
chapter
434
shall
be
assessed
at
a
portion
of
its
actual
value
11
determined
in
the
same
manner
at
which
property
assessed
as
12
commercial
property
is
assessed
under
paragraph
“b”
for
the
same
13
assessment
year.
14
(3)
(2)
For
valuations
established
for
the
assessment
year
15
beginning
January
1,
2025,
and
each
assessment
year
thereafter,
16
the
percentage
of
actual
value
at
which
property
valued
by
the
17
department
of
revenue
pursuant
to
chapters
428
,
437,
and
438
18
shall
be
assessed
shall
be
ninety-eight
one
hundred
percent.
19
(4)
For
valuations
established
for
the
assessment
year
20
beginning
January
1,
2026,
the
percentage
of
actual
value
at
21
which
property
valued
by
the
department
of
revenue
pursuant
22
to
chapters
428
and
438
shall
be
assessed
shall
be
ninety-six
23
percent.
24
(5)
For
valuations
established
for
the
assessment
year
25
beginning
January
1,
2027,
the
percentage
of
actual
value
at
26
which
property
valued
by
the
department
of
revenue
pursuant
to
27
chapters
428
and
438
shall
be
assessed
shall
be
ninety-four
28
percent.
29
(6)
For
valuations
established
for
the
assessment
year
30
beginning
January
1,
2028,
the
percentage
of
actual
value
at
31
which
property
valued
by
the
department
of
revenue
pursuant
32
to
chapters
428
and
438
shall
be
assessed
shall
be
ninety-two
33
percent.
34
(7)
For
valuations
established
on
or
after
January
1,
2029,
35
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the
percentage
of
actual
value
at
which
property
valued
by
the
1
department
of
revenue
pursuant
to
chapters
428
and
438
shall
be
2
assessed
shall
be
ninety
percent.
3
b.
For
valuations
established
on
or
after
January
1,
2013,
4
commercial
Commercial
property,
excluding
properties
referred
5
to
in
section
427A.1,
subsection
9
,
shall
be
assessed
at
a
6
portion
of
its
actual
value,
as
determined
in
this
paragraph
7
“b”
.
8
(1)
For
valuations
established
for
the
assessment
year
9
beginning
January
1,
2013,
the
percentage
of
actual
value
10
as
equalized
by
the
department
of
revenue
as
provided
in
11
section
441.49
at
which
commercial
property
shall
be
assessed
12
shall
be
ninety-five
percent.
For
valuations
established
13
for
the
assessment
year
beginning
January
1,
2014,
and
each
14
assessment
year
thereafter
beginning
before
January
1,
2022,
15
the
percentage
of
actual
value
as
equalized
by
the
department
16
of
revenue
as
provided
in
section
441.49
at
which
commercial
17
property
shall
be
assessed
shall
be
ninety
percent.
18
(2)
(1)
For
valuations
established
for
the
assessment
year
19
beginning
January
1,
2022,
and
each
assessment
year
thereafter
20
beginning
before
January
1,
2025
,
the
portion
of
actual
value
21
at
which
each
property
unit
of
commercial
property
shall
be
22
assessed
shall
be
the
sum
of
the
following:
23
(a)
An
amount
equal
to
the
product
of
the
assessment
24
limitation
percentage
applicable
to
residential
property
under
25
subsection
4
for
that
assessment
year
multiplied
by
the
actual
26
value
of
the
property
that
exceeds
zero
dollars
but
does
not
27
exceed
one
hundred
fifty
thousand
dollars.
28
(b)
An
amount
equal
to
ninety
percent
of
the
actual
value
of
29
the
property
for
that
assessment
year
that
exceeds
one
hundred
30
fifty
thousand
dollars.
31
(2)
For
valuations
established
for
the
assessment
year
32
beginning
January
1,
2025,
and
each
assessment
year
thereafter,
33
the
percentage
of
actual
value
as
equalized
by
the
department
34
of
revenue
as
provided
in
section
441.49
at
which
commercial
35
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property
shall
be
assessed
shall
be
one
hundred
percent.
1
c.
For
valuations
established
on
or
after
January
1,
2013,
2
industrial
Industrial
property,
excluding
properties
referred
3
to
in
section
427A.1,
subsection
9
,
shall
be
assessed
at
a
4
portion
of
its
actual
value,
as
determined
in
this
paragraph
5
“c”
.
6
(1)
For
valuations
established
for
the
assessment
year
7
beginning
January
1,
2013,
the
percentage
of
actual
value
8
as
equalized
by
the
department
of
revenue
as
provided
in
9
section
441.49
at
which
industrial
property
shall
be
assessed
10
shall
be
ninety-five
percent.
For
valuations
established
11
for
the
assessment
year
beginning
January
1,
2014,
and
each
12
assessment
year
thereafter
beginning
before
January
1,
2022,
13
the
percentage
of
actual
value
as
equalized
by
the
department
14
of
revenue
as
provided
in
section
441.49
at
which
industrial
15
property
shall
be
assessed
shall
be
ninety
percent.
16
(2)
(1)
For
valuations
established
for
the
assessment
year
17
beginning
January
1,
2022,
and
each
assessment
year
thereafter
18
beginning
before
January
1,
2025
,
the
portion
of
actual
value
19
at
which
each
property
unit
of
industrial
property
shall
be
20
assessed
shall
be
the
sum
of
the
following:
21
(a)
An
amount
equal
to
the
product
of
the
assessment
22
limitation
percentage
applicable
to
residential
property
under
23
subsection
4
for
that
assessment
year
multiplied
by
the
actual
24
value
of
the
property
that
exceeds
zero
dollars
but
does
not
25
exceed
one
hundred
fifty
thousand
dollars.
26
(b)
An
amount
equal
to
ninety
percent
of
the
actual
value
of
27
the
property
for
that
assessment
year
that
exceeds
one
hundred
28
fifty
thousand
dollars.
29
(2)
For
valuations
established
for
the
assessment
year
30
beginning
January
1,
2025,
and
each
assessment
year
thereafter,
31
the
percentage
of
actual
value
as
equalized
by
the
department
32
of
revenue
as
provided
in
section
441.49
at
which
industrial
33
property
shall
be
assessed
shall
be
one
hundred
percent.
34
d.
For
valuations
established
for
the
assessment
year
35
-39-
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85
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651
beginning
January
1,
2019,
and
each
assessment
year
thereafter
1
beginning
before
January
1,
2025
,
the
percentages
or
portions
2
of
actual
value
at
which
property
is
assessed,
as
determined
3
under
this
subsection
,
shall
not
be
applied
to
the
value
of
4
wind
energy
conversion
property
valued
under
section
427B.26
5
the
construction
of
which
is
approved
by
the
Iowa
utilities
6
commission
on
or
after
July
1,
2018.
7
e.
(1)
For
the
fiscal
year
beginning
July
1,
2023,
8
there
is
appropriated
from
the
general
fund
of
the
state
to
9
the
department
of
revenue
the
sum
of
one
hundred
twenty-two
10
million
three
hundred
fifty
thousand
dollars
to
be
used
11
for
payments
under
this
paragraph
calculated
as
a
result
12
of
the
assessment
limitations
imposed
under
paragraph
“b”
,
13
subparagraph
(2),
subparagraph
division
(a),
and
paragraph
14
“c”
,
subparagraph
(2),
subparagraph
division
(a).
For
each
15
fiscal
year
beginning
on
or
after
July
1,
2024,
but
before
16
July
1,
2026,
there
is
appropriated
from
the
general
fund
of
17
the
state
to
the
department
of
revenue
the
sum
of
one
hundred
18
twenty-five
million
dollars
to
be
used
for
payments
under
this
19
paragraph
calculated
as
a
result
of
the
assessment
limitations
20
imposed
under
paragraph
“b”
,
subparagraph
(2),
subparagraph
21
division
(a),
Code
2025,
and
paragraph
“c”
,
subparagraph
(2),
22
subparagraph
division
(a)
,
Code
2025
.
23
(2)
For
fiscal
years
beginning
on
or
after
July
1,
2023,
but
24
before
July
1,
2026,
each
county
treasurer
shall
be
paid
by
the
25
department
of
revenue
an
amount
calculated
under
subparagraph
26
(4)
for
the
applicable
fiscal
year
.
If
an
amount
appropriated
27
for
the
fiscal
year
is
insufficient
to
make
all
payments
as
28
calculated
under
subparagraph
(4),
the
director
of
revenue
29
shall
prorate
the
payments
to
the
county
treasurers
and
shall
30
notify
the
county
auditors
of
the
pro
rata
percentage
on
or
31
before
September
30.
32
(3)
On
or
before
July
1
of
each
applicable
fiscal
year,
the
33
assessor
shall
report
to
the
county
auditor
that
portion
of
the
34
total
actual
value
of
all
commercial
property
and
industrial
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property
in
the
county
that
is
subject
to
the
assessment
1
limitations
imposed
under
paragraph
“b”
,
subparagraph
(2),
2
subparagraph
division
(a),
Code
2025,
and
paragraph
“c”
,
3
subparagraph
(2),
subparagraph
division
(a),
Code
2025,
for
the
4
assessment
year
used
to
calculate
the
taxes
due
and
payable
in
5
that
fiscal
year.
6
(4)
On
or
before
September
1
of
each
applicable
fiscal
year,
7
the
county
auditor
shall
prepare
a
statement,
based
on
the
8
report
received
in
subparagraph
(3)
and
information
transmitted
9
to
the
county
auditor
under
chapter
434
,
listing
for
each
10
taxing
district
in
the
county:
11
(a)
The
product
of
the
portion
of
the
total
actual
value
12
of
all
commercial
property,
industrial
property,
and
property
13
valued
by
the
department
under
chapter
434
in
the
county
14
that
is
subject
to
the
assessment
limitations
imposed
under
15
paragraph
“b”
,
subparagraph
(2),
subparagraph
division
(a),
16
Code
2025,
and
paragraph
“c”
,
subparagraph
(2),
subparagraph
17
division
(a),
Code
2025,
for
the
applicable
assessment
year
18
used
to
calculate
taxes
which
are
due
and
payable
in
the
19
applicable
fiscal
year
multiplied
by
the
difference,
stated
20
as
a
percentage,
between
ninety
percent
and
the
assessment
21
limitation
percentage
applicable
to
residential
property
under
22
subsection
4
for
the
applicable
assessment
year.
23
(b)
The
tax
levy
rate
per
one
thousand
dollars
of
assessed
24
value
for
each
taxing
district
for
the
applicable
fiscal
year.
25
(c)
The
amount
of
the
payment
for
each
county
is
equal
to
26
the
amount
determined
pursuant
to
subparagraph
division
(a),
27
multiplied
by
the
tax
rate
specified
in
subparagraph
division
28
(b),
and
then
divided
by
one
thousand
dollars.
29
(5)
The
county
auditor
shall
certify
and
forward
one
copy
of
30
the
statement
described
in
subparagraph
(4)
to
the
department
31
of
revenue
not
later
than
September
1
of
each
fiscal
year.
32
(6)
The
amounts
determined
under
this
paragraph
shall
33
be
paid
by
the
department
to
the
county
treasurers
in
equal
34
installments
in
September
and
March
of
each
year.
The
county
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treasurer
shall
apportion
the
payments
among
the
eligible
1
taxing
districts
in
the
county
and
the
amounts
received
by
each
2
taxing
authority
shall
be
treated
the
same
as
property
taxes
3
paid.
4
f.
For
the
purposes
of
this
subsection
,
unless
the
context
5
otherwise
requires:
6
(1)
“Contiguous
parcels”
means
any
of
the
following:
7
(a)
Parcels
that
share
a
common
boundary.
8
(b)
Parcels
within
the
same
building
or
structure
9
regardless
of
whether
the
parcels
share
a
common
boundary.
10
(c)
Permanent
improvements
to
the
land
that
are
situated
11
on
one
or
more
parcels
of
land
that
are
assessed
and
taxed
12
separately
from
the
permanent
improvements
if
the
parcels
of
13
land
upon
which
the
permanent
improvements
are
situated
share
14
a
common
boundary.
15
(2)
“Parcel”
means
the
same
as
defined
in
section
445.1
.
16
“Parcel”
also
means
that
portion
of
a
parcel
assigned
a
17
classification
of
commercial
property
or
industrial
property
18
pursuant
to
section
441.21,
subsection
14,
paragraph
“b”
,
Code
19
2025
.
20
(3)
“Property
unit”
means
a
parcel
or
contiguous
parcels
21
all
of
which
are
located
within
the
same
county,
with
the
same
22
property
tax
classification,
are
owned
by
the
same
person,
and
23
are
operated
by
that
person
for
a
common
use
and
purpose.
24
Sec.
57.
Section
441.21,
subsection
8,
paragraph
b,
Code
25
2025,
is
amended
to
read
as
follows:
26
b.
Notwithstanding
paragraph
“a”
,
any
construction
or
27
installation
of
a
solar
energy
system
on
property
classified
28
as
agricultural,
residential,
multiresidential,
commercial,
or
29
industrial
property
shall
not
increase
the
actual,
assessed,
30
and
taxable
values
of
the
property
for
five
full
assessment
31
years.
32
Sec.
58.
Section
441.21,
subsections
9
and
10,
Code
2025,
33
are
amended
to
read
as
follows:
34
9.
Not
later
than
November
1,
1979
2025
,
and
November
35
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1
of
each
subsequent
year,
the
director
shall
certify
to
1
the
county
auditor
of
each
county
the
percentages
of
actual
2
value
at
which
residential
property,
agricultural
property,
3
commercial
property,
industrial
property,
property
valued
by
4
the
department
of
revenue
pursuant
to
chapters
428
and
438,
5
property
valued
by
the
department
of
revenue
pursuant
to
6
chapter
434,
and
property
valued
by
the
department
of
revenue
7
pursuant
to
chapter
437
in
each
assessing
jurisdiction
in
8
the
county
each
classification
of
property
shall
be
assessed
9
for
taxation
,
including
for
assessment
years
beginning
on
10
or
after
January
1,
2022,
the
percentages
used
to
apply
the
11
assessment
limitations
under
subsection
5,
paragraphs
“b”
12
and
“c”
.
The
county
auditor
shall
proceed
to
determine
the
13
assessed
values
of
agricultural
property,
residential
property,
14
commercial
property,
industrial
property,
property
valued
by
15
the
department
of
revenue
pursuant
to
chapters
428
and
438,
16
property
valued
by
the
department
of
revenue
pursuant
to
17
chapter
434,
and
property
valued
by
the
department
of
revenue
18
pursuant
to
chapter
437
by
applying
such
percentages
to
the
19
current
actual
value
of
such
property,
as
reported
to
the
20
county
auditor
by
the
assessor,
and
the
assessed
values
so
21
determined
shall
be
the
taxable
values
of
such
properties
upon
22
which
the
levy
shall
be
made.
23
10.
The
percentages
percentage
of
actual
value
computed
by
24
the
department
of
revenue
under
subsection
4
for
agricultural
25
property
,
residential
property,
commercial
property,
industrial
26
property,
property
valued
by
the
department
of
revenue
pursuant
27
to
chapters
428
and
438
,
property
valued
by
the
department
of
28
revenue
pursuant
to
chapter
434
,
and
property
valued
by
the
29
department
of
revenue
pursuant
to
chapter
437
,
including
for
30
assessment
years
beginning
on
or
after
January
1,
2022,
the
31
percentages
used
to
apply
the
assessment
limitations
under
32
subsection
5
,
paragraphs
“b”
and
“c”
,
and
used
to
determine
33
assessed
values
of
those
classes
of
agricultural
property
34
do
does
not
constitute
a
rule
as
defined
in
section
17A.2,
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subsection
11
.
1
Sec.
59.
Section
441.21,
subsection
13,
paragraph
a,
2
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
3
follows:
4
Beginning
with
valuations
established
on
or
after
January
5
1,
2016
2026
,
but
before
January
1,
2022,
all
of
the
following
6
shall
be
valued
as
a
separate
class
of
property
known
as
7
multiresidential
property
and,
excluding
properties
referred
8
to
in
section
427A.1,
subsection
9
,
shall
be
assessed
at
9
a
percentage
of
its
actual
value,
as
determined
in
this
10
subsection
:
11
Sec.
60.
Section
441.21,
subsection
13,
paragraph
b,
Code
12
2025,
is
amended
by
striking
the
paragraph
and
inserting
in
13
lieu
thereof
the
following:
14
b.
(1)
For
valuations
established
for
the
assessment
year
15
beginning
January
1,
2026,
the
percentage
of
actual
value
as
16
equalized
by
the
department
of
revenue
as
provided
in
section
17
441.49
at
which
multiresidential
property
shall
be
assessed
18
shall
be
seventy-five
percent.
19
(2)
For
valuations
established
for
the
assessment
year
20
beginning
January
1,
2027,
the
percentage
of
actual
value
as
21
equalized
by
the
department
of
revenue
as
provided
in
section
22
441.49
at
which
multiresidential
property
shall
be
assessed
23
shall
be
seventy-seven
and
one-half
percent.
24
(3)
For
valuations
established
for
the
assessment
year
25
beginning
January
1,
2028,
the
percentage
of
actual
value
as
26
equalized
by
the
department
of
revenue
as
provided
in
section
27
441.49
at
which
multiresidential
property
shall
be
assessed
28
shall
be
eighty
percent.
29
(4)
For
valuations
established
for
the
assessment
year
30
beginning
January
1,
2029,
the
percentage
of
actual
value
as
31
equalized
by
the
department
of
revenue
as
provided
in
section
32
441.49
at
which
multiresidential
property
shall
be
assessed
33
shall
be
eighty-two
and
one-half
percent.
34
(5)
For
valuations
established
for
the
assessment
year
35
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beginning
January
1,
2030,
the
percentage
of
actual
value
as
1
equalized
by
the
department
of
revenue
as
provided
in
section
2
441.49
at
which
multiresidential
property
shall
be
assessed
3
shall
be
eighty-five
percent.
4
(6)
For
valuations
established
for
the
assessment
year
5
beginning
January
1,
2031,
the
percentage
of
actual
value
as
6
equalized
by
the
department
of
revenue
as
provided
in
section
7
441.49
at
which
multiresidential
property
shall
be
assessed
8
shall
be
eighty-seven
and
one-half
percent.
9
(7)
For
valuations
established
for
the
assessment
year
10
beginning
January
1,
2032,
the
percentage
of
actual
value
as
11
equalized
by
the
department
of
revenue
as
provided
in
section
12
441.49
at
which
multiresidential
property
shall
be
assessed
13
shall
be
ninety
percent.
14
(8)
For
valuations
established
for
the
assessment
year
15
beginning
January
1,
2033,
the
percentage
of
actual
value
as
16
equalized
by
the
department
of
revenue
as
provided
in
section
17
441.49
at
which
multiresidential
property
shall
be
assessed
18
shall
be
ninety-two
and
one-half
percent.
19
(9)
For
valuations
established
for
the
assessment
year
20
beginning
January
1,
2034,
the
percentage
of
actual
value
as
21
equalized
by
the
department
of
revenue
as
provided
in
section
22
441.49
at
which
multiresidential
property
shall
be
assessed
23
shall
be
ninety-five
percent.
24
(10)
For
valuations
established
for
the
assessment
year
25
beginning
January
1,
2035,
the
percentage
of
actual
value
as
26
equalized
by
the
department
of
revenue
as
provided
in
section
27
441.49
at
which
multiresidential
property
shall
be
assessed
28
shall
be
ninety-seven
and
one-half
percent.
29
(11)
For
valuations
established
for
the
assessment
30
year
beginning
January
1,
2036,
and
each
assessment
year
31
thereafter,
the
percentage
of
actual
value
as
equalized
by
32
the
department
of
revenue
as
provided
in
section
441.49
at
33
which
multiresidential
property
shall
be
assessed
shall
be
one
34
hundred
percent.
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Sec.
61.
Section
441.21,
subsection
13,
paragraph
c,
Code
1
2025,
is
amended
to
read
as
follows:
2
c.
Beginning
with
valuations
established
on
or
after
3
January
1,
2016
2026
,
but
before
January
1,
2022,
for
parcels
4
for
which
a
portion
of
the
parcel
satisfies
the
requirements
5
for
classification
as
multiresidential
property
pursuant
to
6
paragraph
“a”
,
subparagraph
(5)
or
(6),
the
assessor
shall
7
assign
to
that
portion
of
the
parcel
the
classification
8
of
multiresidential
property
and
to
such
other
portions
of
9
the
parcel
the
property
classification
for
which
such
other
10
portions
qualify.
11
Sec.
62.
Section
441.21,
subsection
13,
Code
2025,
is
12
amended
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
f.
For
purposes
of
equalization
under
14
sections
441.47
through
441.49,
multiresidential
property
shall
15
be
considered
residential
property.
16
Sec.
63.
Section
441.21,
subsection
14,
Code
2025,
is
17
amended
to
read
as
follows:
18
14.
a.
Beginning
with
valuations
established
on
or
after
19
January
1,
2022
2026
,
all
of
the
following
property
primarily
20
used
or
intended
for
human
habitation
containing
two
or
fewer
21
dwelling
units
shall
be
classified
and
valued
as
residential
22
property
:
.
23
(1)
Property
primarily
used
or
intended
for
human
24
habitation
containing
two
or
fewer
dwelling
units.
25
(2)
Mobile
home
parks.
26
(3)
Manufactured
home
communities.
27
(4)
Land-leased
communities.
28
(5)
Assisted
living
facilities.
29
(6)
A
parcel
primarily
used
or
intended
for
human
habitation
30
containing
three
or
more
separate
dwelling
units.
If
a
31
portion
of
such
a
parcel
is
used
or
intended
for
a
purpose
32
that,
if
the
primary
use,
would
be
classified
as
commercial
33
property
or
industrial
property,
each
such
portion,
including
34
a
proportionate
share
of
the
land
included
in
the
parcel,
if
35
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applicable,
shall
be
assigned
the
appropriate
classification
1
pursuant
to
paragraph
“b”
.
2
(7)
For
a
parcel
that
is
primarily
used
or
intended
for
use
3
as
commercial
property
or
industrial
property,
that
portion
4
of
the
parcel
that
is
used
or
intended
for
human
habitation,
5
regardless
of
the
number
of
dwelling
units
contained
on
the
6
parcel,
including
a
proportionate
share
of
the
land
included
7
in
the
parcel,
if
applicable.
The
portion
of
such
a
parcel
8
used
or
intended
for
use
as
commercial
property
or
industrial
9
property,
including
a
proportionate
share
of
the
land
included
10
in
the
parcel,
if
applicable,
shall
be
assigned
the
appropriate
11
classification
pursuant
to
paragraph
“b”
.
12
b.
Beginning
with
valuations
established
on
or
after
13
January
1,
2022,
for
parcels
for
which
a
portion
of
the
parcel
14
satisfies
the
requirements
for
classification
as
residential
15
property
pursuant
to
paragraph
“a”
,
subparagraph
(6)
or
(7),
16
the
assessor
shall
assign
to
that
portion
of
the
parcel
the
17
classification
of
residential
property
and
to
such
other
18
portions
of
the
parcel
the
property
classification
for
which
19
such
other
portions
qualify.
20
c.
Property
that
is
rented
or
leased
to
low-income
21
individuals
and
families
as
authorized
by
section
42
of
the
22
Internal
Revenue
Code
,
and
that
has
not
been
withdrawn
from
23
section
42
assessment
procedures
under
subsection
2
of
this
24
section
,
or
a
hotel,
motel,
inn,
or
other
building
where
rooms
25
or
dwelling
units
are
usually
rented
for
less
than
one
month
26
shall
not
be
classified
as
residential
property
under
this
27
subsection
.
28
d.
As
used
in
this
subsection
:
29
(1)
“Assisted
living
facility”
means
property
for
providing
30
assisted
living
as
defined
in
section
231C.2
.
“Assisted
living
31
facility”
also
includes
a
health
care
facility,
as
defined
in
32
section
135C.1
,
an
elder
group
home,
as
defined
in
section
33
231B.1
,
a
child
foster
care
facility
under
chapter
237
,
or
34
property
used
for
a
hospice
program
as
defined
in
section
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135J.1
.
1
(2)
“Dwelling
unit”
means
an
apartment,
group
of
rooms,
2
or
single
room
which
is
occupied
as
separate
living
quarters
3
or,
if
vacant,
is
intended
for
occupancy
as
separate
living
4
quarters,
in
which
a
tenant
can
live
and
sleep
separately
from
5
any
other
persons
in
the
building.
6
(3)
“Land-leased
community”
means
the
same
as
defined
in
7
sections
335.30A
and
414.28A
.
8
(4)
“Manufactured
home
community”
means
the
same
as
a
9
land-leased
community.
10
(5)
“Mobile
home
park”
means
the
same
as
defined
in
section
11
435.1
.
12
Sec.
64.
Section
558.46,
Code
2025,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
4A.
For
the
purposes
of
this
section,
15
“residential
property”
includes
multiresidential
property.
16
Sec.
65.
SAVINGS
PROVISION.
This
division
of
this
Act,
17
pursuant
to
section
4.13,
does
not
affect
the
operation
of,
18
or
prohibit
the
application
of,
prior
provisions
of
section
19
441.21,
or
rules
adopted
under
chapter
17A
to
administer
prior
20
provisions
of
section
441.21,
for
assessment
years
beginning
21
before
January
1,
2025,
or
for
duties,
powers,
protests,
22
appeals,
proceedings,
actions,
or
remedies
attributable
to
an
23
assessment
year
beginning
before
January
1,
2025,
including
24
property
taxes
due
and
payable
in
a
fiscal
year
as
the
result
25
of
an
assessment
year
beginning
before
January
1,
2025.
26
Sec.
66.
EFFECTIVE
DATE.
The
following
take
effect
January
27
1,
2026:
28
1.
The
section
of
this
division
of
this
Act
amending
section
29
386.8.
30
2.
The
section
of
this
division
of
this
Act
amending
section
31
386.9.
32
3.
The
section
of
this
division
of
this
Act
amending
section
33
386.10.
34
4.
The
section
of
this
division
of
this
Act
amending
section
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404.2,
subsection
2,
paragraph
“f”.
1
5.
The
section
of
this
division
of
this
Act
amending
section
2
404.3,
subsection
4,
paragraph
“a”.
3
6.
The
section
of
this
division
of
this
Act
amending
section
4
404.3A.
5
7.
The
section
of
this
division
of
this
Act
amending
section
6
404.3D.
7
8.
The
section
of
this
division
of
this
Act
amending
section
8
441.21,
subsection
2.
9
9.
The
section
of
this
division
of
this
Act
amending
section
10
441.21,
subsection
8,
paragraph
“b”.
11
10.
The
sections
of
this
division
of
this
Act
amending
12
section
441.21,
subsection
13.
13
11.
The
section
of
this
division
of
this
Act
amending
14
section
441.21,
subsection
14.
15
12.
The
section
of
this
division
of
this
Act
amending
16
section
558.46.
17
Sec.
67.
RETROACTIVE
APPLICABILITY.
Except
as
otherwise
18
provided
in
this
division
of
this
Act,
this
division
of
this
19
Act
applies
retroactively
to
assessment
years
beginning
on
or
20
after
January
1,
2025.
21
Sec.
68.
APPLICABILITY.
The
following
apply
to
assessment
22
years
beginning
on
or
after
January
1,
2026:
23
1.
The
section
of
this
division
of
this
Act
amending
section
24
386.8.
25
2.
The
section
of
this
division
of
this
Act
amending
section
26
386.9.
27
3.
The
section
of
this
division
of
this
Act
amending
section
28
386.10.
29
4.
The
section
of
this
division
of
this
Act
amending
section
30
404.2,
subsection
2,
paragraph
“f”.
31
5.
The
section
of
this
division
of
this
Act
amending
section
32
404.3,
subsection
4,
paragraph
“a”.
33
6.
The
section
of
this
division
of
this
Act
amending
section
34
404.3A.
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7.
The
section
of
this
division
of
this
Act
amending
section
1
404.3D.
2
8.
The
section
of
this
division
of
this
Act
amending
section
3
441.21,
subsection
2.
4
9.
The
section
of
this
division
of
this
Act
amending
section
5
441.21,
subsection
8,
paragraph
“b”.
6
10.
The
sections
of
this
division
of
this
Act
amending
7
section
441.21,
subsection
13.
8
11.
The
section
of
this
division
of
this
Act
amending
9
section
441.21,
subsection
14.
10
12.
The
section
of
this
division
of
this
Act
amending
11
section
558.46.
12
DIVISION
V
13
DISABLED
VETERAN
AND
HOMESTEAD
CREDITS
AND
EXEMPTIONS
14
Sec.
69.
Section
25B.7,
subsection
2,
paragraph
a,
Code
15
2025,
is
amended
to
read
as
follows:
16
a.
Homestead
tax
credit
pursuant
to
section
425.1
,
and
17
sections
425.2
through
425.13
,
and
section
425.15
.
18
Sec.
70.
Section
425.1,
subsection
2,
Code
2025,
is
amended
19
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
20
following:
21
2.
a.
The
homestead
credit
fund
shall
be
apportioned
each
22
year
so
as
to
give
a
credit
against
the
tax
on
each
eligible
23
homestead
in
the
state
equal
to
the
amounts
specified
pursuant
24
to
paragraph
“b”
or
“c”
,
as
applicable.
25
b.
(1)
If
the
owner
of
a
homestead
allowed
a
credit
under
26
this
subchapter
is
any
of
the
following,
the
homestead
credit
27
allowed
on
the
homestead
shall
be
the
entire
amount
of
tax
28
levied
on
the
homestead:
29
(a)
A
veteran
of
any
of
the
military
forces
of
the
United
30
States
who
acquired
the
homestead
under
38
U.S.C.
§21.801,
31
21.802
prior
to
August
6,
1991,
or
under
38
U.S.C.
§2101,
2102.
32
(b)
A
veteran
as
defined
in
section
35.1
with
a
permanent
33
service-connected
disability
rating
of
one
hundred
percent,
as
34
certified
by
the
United
States
department
of
veterans
affairs,
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or
a
permanent
and
total
disability
rating
based
on
individual
1
unemployability
that
is
compensated
at
the
one
hundred
percent
2
disability
rate,
as
certified
by
the
United
States
department
3
of
veterans
affairs.
4
(c)
A
former
member
of
the
national
guard
of
any
state
5
who
otherwise
meets
the
service
requirements
of
section
35.1,
6
subsection
2,
paragraph
“b”
,
subparagraph
(2)
or
(7),
with
a
7
permanent
service-connected
disability
rating
of
one
hundred
8
percent,
as
certified
by
the
United
States
department
of
9
veterans
affairs,
or
a
permanent
and
total
disability
rating
10
based
on
individual
unemployability
that
is
compensated
at
the
11
one
hundred
percent
disability
rate,
as
certified
by
the
United
12
States
department
of
veterans
affairs.
13
(d)
An
individual
who
is
a
surviving
spouse
or
a
child
and
14
who
is
receiving
dependency
and
indemnity
compensation
pursuant
15
to
38
U.S.C.
§1301
et
seq.,
as
certified
by
the
United
States
16
department
of
veterans
affairs.
17
(2)
(a)
For
an
owner
described
in
subparagraph
(1),
18
subparagraph
division
(a),
(b),
or
(c),
the
credit
allowed
19
shall
be
continued
to
the
estate
of
an
owner
who
is
deceased
20
or
the
surviving
spouse
and
any
child,
as
defined
in
section
21
234.1,
who
are
the
beneficiaries
of
a
deceased
owner,
so
long
22
as
the
surviving
spouse
remains
unmarried.
23
(b)
An
individual
described
in
subparagraph
(1),
24
subparagraph
division
(d),
is
no
longer
eligible
for
the
credit
25
upon
termination
of
dependency
and
indemnity
compensation
under
26
38
U.S.C.
§1301
et
seq.
27
(3)
An
owner
or
a
beneficiary
of
an
owner
who
elects
to
28
secure
the
credit
provided
in
this
paragraph
is
not
eligible
29
for
the
credit
provided
in
paragraph
“c”
or
any
other
real
30
property
tax
credit
or
exemption
provided
by
law
for
veterans
31
of
military
service.
32
(4)
If
an
owner
acquires
a
different
homestead,
the
33
credit
allowed
under
this
paragraph
may
be
claimed
on
the
new
34
homestead
unless
the
owner
fails
to
meet
the
other
requirements
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of
this
paragraph.
1
(5)
(a)
Except
as
provided
in
subparagraph
division
(b),
2
the
list
of
the
names
and
addresses
of
individuals
allowed
3
a
credit
under
this
paragraph
and
maintained
by
the
county
4
recorder,
county
treasurer,
county
assessor,
city
assessor,
or
5
other
government
body
is
confidential
information
and
shall
6
not
be
disseminated
to
any
person
unless
otherwise
ordered
by
7
a
court
or
released
by
the
lawful
custodian
of
the
records
8
pursuant
to
state
or
federal
law.
The
county
recorder,
county
9
treasurer,
county
assessor,
city
assessor,
or
other
government
10
body
responsible
for
maintaining
the
names
and
addresses
11
of
individuals
allowed
a
credit
under
this
paragraph
may
12
display
such
credit
on
individual
paper
records
and
individual
13
electronic
records,
including
display
on
an
internet
site.
14
(b)
Upon
request,
a
county
recorder,
county
assessor,
city
15
assessor,
or
other
entity
may
share
information
as
described
in
16
subparagraph
division
(a)
to
a
county
veterans
service
officer
17
for
purposes
of
providing
information
on
benefits
and
services
18
available
to
veterans
and
their
families.
19
(6)
(a)
For
an
owner
who
makes
an
application
to
secure
20
the
credit
provided
in
this
paragraph
before
July
1,
2025,
21
and
for
the
beneficiary
of
such
an
owner,
“homestead”
shall
22
mean
the
same
as
defined
in
section
425.11
for
each
succeeding
23
assessment
year.
24
(b)
For
an
owner
who
makes
an
application
to
secure
the
25
credit
provided
in
this
paragraph
on
or
after
July
1,
2025,
and
26
for
the
beneficiary
of
such
an
owner,
“homestead”
shall
mean
the
27
same
as
provided
in
section
425.11,
except
the
homestead
shall
28
not
include
appurtenances
and
shall
not
exceed
one-half
acre.
29
(7)
For
purposes
of
this
paragraph,
“permanent
and
total
30
disability
rating
based
on
individual
unemployability”
means
31
a
condition
under
which
a
person
has
either
a
permanent
32
service-connected
disability
rating
of
sixty
percent
or
two
or
33
more
permanent
service-connected
disability
conditions
in
which
34
one
of
the
conditions
has
at
least
a
forty
percent
rating
and
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the
combined
rating
for
all
the
conditions
is
at
least
seventy
1
percent,
and
the
person
has
an
administrative
adjustment
added
2
to
the
service-connected
disability
rating,
due
to
individual
3
unemployability,
such
that
the
United
States
department
of
4
veterans
affairs
rates
the
veteran
permanently
and
totally
5
disabled
for
purposes
of
disability
compensation.
6
c.
(1)
For
assessment
years
beginning
prior
to
January
7
1,
2025,
unless
eligible
under
section
425.15,
Code
2025,
an
8
amount
equal
to
the
actual
levy
on
the
first
four
thousand
9
eight
hundred
fifty
dollars
of
actual
value
for
each
homestead.
10
(2)
For
the
assessment
year
beginning
January
1,
2025,
11
and
each
assessment
year
thereafter,
unless
eligible
under
12
paragraph
“b”
,
zero.
13
Sec.
71.
Section
425.1A,
subsection
1,
Code
2025,
is
amended
14
to
read
as
follows:
15
1.
The
following
exemptions
from
taxation
shall
be
allowed
16
in
addition
to
the
homestead
credit
exemption
under
subsection
17
1A
for
an
owner
that
has
attained
the
age
of
sixty-five
years
18
by
January
1
of
the
assessment
year:
19
a.
For
the
assessment
year
beginning
January
1,
2023,
the
20
eligible
homestead,
not
to
exceed
three
thousand
two
hundred
21
fifty
dollars
in
taxable
value.
22
b.
For
the
assessment
year
years
beginning
on
or
after
23
January
1,
2024,
and
each
succeeding
assessment
year,
the
24
eligible
homestead,
not
to
exceed
six
thousand
five
hundred
25
dollars
in
taxable
value.
26
Sec.
72.
Section
425.1A,
Code
2025,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
1A.
For
each
assessment
year
beginning
29
on
or
after
January
1,
2025,
an
exemption
from
taxation
30
of
twenty-five
percent
of
taxable
value,
not
to
exceed
an
31
exemption
of
one
hundred
twenty-five
thousand
dollars
in
32
taxable
value,
shall
be
allowed
on
each
eligible
homestead
in
33
addition
to
the
exemption
under
subsection
1,
if
applicable.
34
Sec.
73.
Section
425.2,
subsections
1
and
2,
Code
2025,
are
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amended
to
read
as
follows:
1
1.
A
person
who
wishes
to
qualify
for
the
homestead
credit
2
or
exemption
allowed
under
this
subchapter
shall
obtain
the
3
appropriate
forms
for
filing
for
the
credit
from
the
assessor.
4
The
forms
shall
include
the
ability
to
claim
the
credit
under
5
section
425.1
and
the
exemptions
under
section
425.1A.
6
However,
a
separate
form
shall
be
required
for
claiming
a
7
credit
under
section
425.1,
subsection
2,
paragraph
“b”
.
The
8
person
claiming
the
credit
or
exemption
shall
file
a
verified
9
statement
and
designation
of
homestead
with
the
assessor
for
10
the
year
for
which
the
person
is
first
claiming
the
credit
11
or
exemption
.
The
claim
shall
be
filed
not
later
than
July
12
1
of
the
year
for
which
the
person
is
claiming
the
credit
or
13
exemption
.
A
claim
filed
after
July
1
of
the
year
for
which
the
14
person
is
claiming
the
credit
or
exemption
shall
be
considered
15
as
a
claim
filed
for
the
following
year.
16
2.
Upon
the
filing
and
allowance
of
the
claim,
the
claim
17
shall
be
allowed
on
that
homestead
for
successive
years
without
18
further
filing
as
long
as
the
property
is
legally
or
equitably
19
owned
and
used
as
a
homestead
by
that
person
or
that
person’s
20
spouse
on
July
1
of
each
of
those
successive
years,
and
the
21
owner
of
the
property
being
claimed
as
a
homestead
declares
22
residency
in
Iowa
for
purposes
of
income
taxation,
and
the
23
property
is
occupied
by
that
person
or
that
person’s
spouse
24
for
at
least
six
months
in
each
of
those
calendar
years
in
25
which
the
fiscal
year
begins.
When
the
property
is
sold
or
26
transferred,
the
buyer
or
transferee
who
wishes
to
qualify
27
shall
refile
for
the
credit
or
exemption
.
However,
when
the
28
property
is
transferred
as
part
of
a
distribution
made
pursuant
29
to
chapter
598
,
the
transferee
who
is
the
spouse
retaining
30
ownership
of
the
property
is
not
required
to
refile
for
the
31
credit
or
exemption
.
Property
divided
pursuant
to
chapter
598
32
shall
not
be
modified
following
the
division
of
the
property.
33
An
owner
who
ceases
to
use
a
property
for
a
homestead
or
34
intends
not
to
use
it
as
a
homestead
for
at
least
six
months
in
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a
calendar
year
shall
provide
written
notice
to
the
assessor
1
by
July
1
following
the
date
on
which
the
use
is
changed.
A
2
person
who
sells
or
transfers
a
homestead
or
the
personal
3
representative
of
a
deceased
person
who
had
a
homestead
at
the
4
time
of
death,
shall
provide
written
notice
to
the
assessor
5
that
the
property
is
no
longer
the
homestead
of
the
former
6
claimant.
7
Sec.
74.
Section
425.2,
subsection
4,
Code
2025,
is
amended
8
by
striking
the
subsection.
9
Sec.
75.
Section
425.2,
subsections
5
and
6,
Code
2025,
are
10
amended
to
read
as
follows:
11
5.
Any
person
sixty-five
years
of
age
or
older
or
any
person
12
who
is
disabled
may
request,
in
writing,
from
the
appropriate
13
assessor
forms
for
filing
for
homestead
tax
credit
.
Any
14
person
sixty-five
years
of
age
or
older
or
who
is
disabled
15
may
complete
the
form,
which
shall
include
a
statement
of
16
homestead,
and
mail
or
return
it
to
the
appropriate
assessor.
17
The
signature
of
the
claimant
on
the
statement
shall
be
18
considered
the
claimant’s
acknowledgment
that
all
statements
19
and
facts
entered
on
the
form
are
correct
to
the
best
of
the
20
claimant’s
knowledge.
21
6.
Upon
adoption
of
a
resolution
by
the
county
board
22
of
supervisors,
any
person
may
request,
in
writing,
from
23
the
appropriate
assessor
forms
for
the
filing
for
homestead
24
tax
credit
.
The
person
may
complete
the
form,
which
shall
25
include
a
statement
of
homestead,
and
mail
or
return
it
to
26
the
appropriate
assessor.
The
signature
of
the
claimant
on
27
the
statement
of
homestead
shall
be
considered
the
claimant’s
28
acknowledgment
that
all
statements
and
facts
entered
on
the
29
form
are
correct
to
the
best
of
the
claimant’s
knowledge.
30
Sec.
76.
Section
425.8,
subsection
1,
Code
2025,
is
amended
31
to
read
as
follows:
32
1.
The
director
of
revenue
shall
prescribe
the
form
33
for
the
making
of
a
verified
statement
and
designation
of
34
homestead,
the
form
for
the
supporting
affidavits
required
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herein,
and
such
other
forms
as
may
be
necessary
for
the
proper
1
administration
of
this
subchapter
.
Whenever
necessary,
the
2
department
of
revenue
shall
forward
to
the
county
auditors
of
3
the
several
counties
in
the
state
the
prescribed
sample
forms,
4
and
the
county
auditors
shall
furnish
blank
forms
prepared
in
5
accordance
therewith
with
the
assessment
rolls,
books,
and
6
supplies
delivered
to
the
assessors.
The
department
of
revenue
7
shall
prescribe
and
the
county
auditors
shall
provide
on
the
8
forms
for
claiming
the
homestead
credit
a
statement
to
the
9
effect
that
the
owner
realizes
that
the
owner
must
give
written
10
notice
to
the
assessor
when
the
owner
changes
the
use
of
the
11
property.
12
Sec.
77.
Section
425.11,
subsection
1,
paragraph
d,
13
subparagraph
(1),
unnumbered
paragraph
1,
Code
2025,
is
amended
14
to
read
as
follows:
15
The
homestead
includes
the
dwelling
house
which
the
owner,
16
in
good
faith,
is
occupying
as
a
home
on
July
1
of
the
year
for
17
which
the
credit
or
exemption
is
claimed
and
occupies
as
a
home
18
for
at
least
six
months
during
the
calendar
year
in
which
the
19
fiscal
year
begins,
except
as
otherwise
provided.
20
Sec.
78.
Section
425.11,
subsection
1,
paragraph
d,
21
subparagraph
(3),
Code
2025,
is
amended
to
read
as
follows:
22
(3)
It
must
not
embrace
more
than
one
dwelling
house,
but
23
where
a
homestead
has
more
than
one
dwelling
house
situated
24
thereon,
the
exemption
and
or
credit
provided
for
in
this
25
subchapter
shall
apply
to
the
home
and
buildings
used
by
the
26
owner,
but
shall
not
apply
to
any
other
dwelling
house
and
27
buildings
appurtenant.
28
Sec.
79.
Section
425.11,
subsection
1,
paragraph
e,
29
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
30
(2)
For
the
purpose
of
this
subchapter
,
the
word
“owner”
31
shall
be
construed
to
mean
a
bona
fide
owner
and
not
one
for
32
the
purpose
only
of
availing
the
person
of
the
benefits
of
this
33
subchapter
.
In
order
to
qualify
for
the
homestead
tax
credit
34
and
or
exemption,
evidence
of
ownership
shall
be
on
file
in
the
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office
of
the
clerk
of
the
district
court
or
recorded
in
the
1
office
of
the
county
recorder
at
the
time
the
owner
files
with
2
the
assessor
a
verified
statement
of
the
homestead
claimed
by
3
the
owner
as
provided
in
section
425.2
.
4
Sec.
80.
Section
483A.24,
subsection
19,
Code
2025,
is
5
amended
to
read
as
follows:
6
19.
Upon
payment
of
a
fee
established
by
rules
adopted
7
pursuant
to
section
483A.1
for
a
lifetime
trout
fishing
8
license,
the
department
shall
issue
a
lifetime
trout
fishing
9
license
to
a
person
who
is
at
least
sixty-five
years
of
age
or
10
to
a
person
who
qualifies
for
the
disabled
veteran
homestead
11
credit
under
section
425.15
425.1,
subsection
2,
paragraph
“b”
.
12
The
department
shall
prepare
an
application
to
be
used
by
a
13
person
requesting
a
lifetime
trout
fishing
license
under
this
14
subsection
.
15
Sec.
81.
REPEAL.
Section
425.15,
Code
2025,
is
repealed.
16
Sec.
82.
IMPLEMENTATION.
Homestead
owners
who
have
filed
17
for
or
that
are
receiving
homestead
credits
or
exemptions
under
18
chapter
425,
subchapter
I,
before
the
effective
date
of
this
19
division
of
this
Act
shall
continue
to
receive
such
credits
and
20
exemptions
for
which
the
owner
is
eligible
for
assessment
years
21
beginning
on
or
after
January
1,
2025,
without
refiling,
and,
22
if
the
owner
is
eligible,
shall
receive
the
exemption
under
23
section
425.1A,
subsection
1A,
as
enacted
in
this
division
of
24
this
Act,
without
filing
for
such
exemption.
25
Sec.
83.
RETROACTIVE
APPLICABILITY.
This
division
of
this
26
Act
applies
retroactively
to
assessment
years
beginning
on
or
27
after
January
1,
2025.
28
DIVISION
VI
29
MILITARY
SERVICE
PROPERTY
TAX
EXEMPTION
30
Sec.
84.
Section
426A.11,
subsection
2,
Code
2025,
is
31
amended
to
read
as
follows:
32
2.
a.
The
property,
not
to
exceed
one
thousand
eight
33
hundred
fifty-two
dollars
in
taxable
value
for
assessment
years
34
beginning
before
January
1,
2023,
of
an
honorably
separated,
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retired,
furloughed
to
a
reserve,
placed
on
inactive
status,
1
or
discharged
veteran,
as
defined
in
section
35.1,
subsection
2
2
,
paragraph
“a”
or
“b”
.
3
b.
The
property,
not
to
exceed
four
thousand
dollars
in
4
taxable
value
for
the
assessment
years
beginning
on
or
after
5
January
1,
2023,
but
before
January
1,
2025,
of
an
honorably
6
separated,
retired,
furloughed
to
a
reserve,
placed
on
inactive
7
status,
or
discharged
veteran,
as
defined
in
section
35.1,
8
subsection
2
,
paragraph
“a”
or
“b”
.
9
c.
The
property,
not
to
exceed
the
following
amounts
in
10
taxable
value,
of
an
honorably
separated,
retired,
furloughed
11
to
a
reserve,
placed
on
inactive
status,
or
discharged
veteran,
12
as
defined
in
section
35.1,
subsection
2,
paragraph
“a”
or
“b”
:
13
(1)
Five
thousand
dollars
in
taxable
value
for
the
14
assessment
year
beginning
January
1,
2025.
15
(2)
Six
thousand
dollars
in
taxable
value
for
the
assessment
16
year
beginning
January
1,
2026.
17
(3)
Seven
thousand
dollars
in
taxable
value
for
assessment
18
years
beginning
on
or
after
January
1,
2027.
19
Sec.
85.
RETROACTIVE
APPLICABILITY.
This
division
of
this
20
Act
applies
retroactively
to
January
1,
2025,
for
assessment
21
years
beginning
on
or
after
that
date.
22
DIVISION
VII
23
HOSPITAL
AND
EMERGENCY
MEDICAL
SERVICES
PROPERTY
TAX
LEVIES
24
Sec.
86.
Section
347.7,
Code
2025,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
3A.
a.
For
fiscal
years
beginning
on
27
or
after
July
1,
2026,
any
property
tax
levy
imposed
for
a
28
county
hospital
under
this
chapter
that
is
limited
by
law
to
29
a
specific
property
tax
levy
rate
per
one
thousand
dollars
of
30
assessed
value
shall
not
exceed
a
levy
rate
per
one
thousand
31
dollars
of
assessed
value
that
is
equal
to
one
thousand
32
multiplied
by
the
quotient
obtained
by
dividing
the
product
of
33
the
budget
adjustment
factor
multiplied
by
the
current
fiscal
34
year’s
actual
property
tax
dollars
certified
for
such
levy
by
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the
remainder
of
the
total
assessed
value
used
to
calculate
1
such
taxes
for
the
budget
year
minus
value
attributable
to
new
2
valuation.
3
b.
For
purposes
of
this
subsection,
“budget
adjustment
4
factor”
,
“budget
year”
,
“current
fiscal
year”
,
and
“new
5
valuation”
mean
the
same
as
defined
in
section
331.423.
6
Sec.
87.
Section
347A.3,
Code
2025,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
3.
a.
For
fiscal
years
beginning
on
9
or
after
July
1,
2026,
any
property
tax
levy
imposed
for
a
10
county
hospital
under
this
chapter
that
is
limited
by
law
to
11
a
specific
property
tax
levy
rate
per
one
thousand
dollars
of
12
assessed
value
shall
not
exceed
a
levy
rate
per
one
thousand
13
dollars
of
assessed
value
that
is
equal
to
one
thousand
14
multiplied
by
the
quotient
obtained
by
dividing
the
product
of
15
the
budget
adjustment
factor
multiplied
by
the
current
fiscal
16
year’s
actual
property
tax
dollars
certified
for
such
levy
by
17
the
remainder
of
the
total
assessed
value
used
to
calculate
18
such
taxes
for
the
budget
year
minus
value
attributable
to
new
19
valuation.
20
b.
For
purposes
of
this
subsection,
“budget
adjustment
21
factor”
,
“budget
year”
,
“current
fiscal
year”
,
and
“new
22
valuation”
mean
the
same
as
defined
in
section
331.423.
23
Sec.
88.
Section
357F.8,
Code
2025,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
3.
a.
For
fiscal
years
beginning
on
26
or
after
July
1,
2026,
any
property
tax
levy
imposed
for
27
the
district
under
this
chapter
that
is
limited
by
law
to
a
28
specific
property
tax
levy
rate
per
one
thousand
dollars
of
29
assessed
value
shall
not
exceed
a
levy
rate
per
one
thousand
30
dollars
of
assessed
value
that
is
equal
to
one
thousand
31
multiplied
by
the
quotient
obtained
by
dividing
the
product
of
32
the
budget
adjustment
factor
multiplied
by
the
current
fiscal
33
year’s
actual
property
tax
dollars
certified
for
such
levy
by
34
the
remainder
of
the
total
assessed
value
used
to
calculate
35
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such
taxes
for
the
budget
year
minus
value
attributable
to
new
1
valuation.
2
b.
For
purposes
of
this
subsection,
“budget
adjustment
3
factor”
,
“budget
year”
,
“current
fiscal
year”
,
and
“new
4
valuation”
mean
the
same
as
defined
in
section
331.423.
5
Sec.
89.
Section
357G.8,
Code
2025,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
3.
a.
For
fiscal
years
beginning
on
8
or
after
July
1,
2026,
any
property
tax
levy
imposed
for
9
the
district
under
this
chapter
that
is
limited
by
law
to
a
10
specific
property
tax
levy
rate
per
one
thousand
dollars
of
11
assessed
value
shall
not
exceed
a
levy
rate
per
one
thousand
12
dollars
of
assessed
value
that
is
equal
to
one
thousand
13
multiplied
by
the
quotient
obtained
by
dividing
the
product
of
14
the
budget
adjustment
factor
multiplied
by
the
current
fiscal
15
year’s
actual
property
tax
dollars
certified
for
such
levy
by
16
the
remainder
of
the
total
assessed
value
used
to
calculate
17
such
taxes
for
the
budget
year
minus
value
attributable
to
new
18
valuation.
19
b.
For
purposes
of
this
subsection,
“budget
adjustment
20
factor”
,
“budget
year”
,
“current
fiscal
year”
,
and
“new
21
valuation”
mean
the
same
as
defined
in
section
384.1.
22
Sec.
90.
NEW
SECTION
.
422D.5A
Levy
limitation.
23
1.
For
fiscal
years
beginning
on
or
after
July
1,
2026,
any
24
property
tax
levy
imposed
under
this
chapter
that
is
limited
25
by
law
to
a
specific
property
tax
levy
rate
per
one
thousand
26
dollars
of
assessed
value
shall
not
exceed
a
levy
rate
per
27
one
thousand
dollars
of
assessed
value
that
is
equal
to
one
28
thousand
multiplied
by
the
quotient
obtained
by
dividing
the
29
product
of
the
budget
adjustment
factor
multiplied
by
the
30
current
fiscal
year’s
actual
property
tax
dollars
certified
31
for
such
levy
by
the
remainder
of
the
total
assessed
value
32
used
to
calculate
such
taxes
for
the
budget
year
minus
value
33
attributable
to
new
valuation.
34
2.
For
purposes
of
this
section,
“budget
adjustment
factor”
,
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“budget
year”
,
“current
fiscal
year”
,
and
“new
valuation”
mean
1
the
same
as
defined
in
section
331.423.
2
DIVISION
VIII
3
PROPERTY
TAX
LEVY
RATES
4
Sec.
91.
Section
176A.10,
subsection
1,
paragraphs
a,
b,
c,
5
d,
and
e,
Code
2025,
are
amended
by
striking
the
paragraphs
and
6
inserting
in
lieu
thereof
the
following:
7
a.
For
an
extension
district
having
a
population
of
less
8
than
thirty
thousand,
an
annual
levy
of
fifteen
cents
per
9
thousand
dollars
of
the
assessed
valuation
of
the
taxable
10
property
in
the
district
up
to
a
maximum
of
two
hundred
11
ninety-one
thousand
dollars
payable
during
the
fiscal
year
12
commencing
July
1,
2026,
and
an
increase
of
six
thousand
13
dollars
in
the
amount
payable
during
each
subsequent
fiscal
14
year.
15
b.
For
an
extension
district
having
a
population
of
thirty
16
thousand
or
more
but
less
than
fifty
thousand,
an
annual
17
levy
of
ten
and
one-eighth
cents
per
thousand
dollars
of
the
18
assessed
valuation
of
the
taxable
property
in
the
district
19
up
to
a
maximum
of
three
hundred
forty-two
thousand
dollars
20
payable
during
the
fiscal
year
commencing
July
1,
2026,
and
an
21
increase
of
seven
thousand
dollars
in
the
amount
payable
during
22
each
subsequent
fiscal
year.
23
c.
For
an
extension
district
having
a
population
of
fifty
24
thousand
or
more
but
less
than
ninety
thousand,
an
annual
levy
25
of
six
and
three-fourths
cents
per
thousand
dollars
of
the
26
assessed
valuation
of
the
taxable
property
in
the
district
up
27
to
a
maximum
of
four
hundred
thirty-six
thousand
five
hundred
28
dollars
payable
during
the
fiscal
year
commencing
July
1,
2026,
29
and
an
increase
of
nine
thousand
dollars
in
the
amount
payable
30
during
each
subsequent
fiscal
year.
31
d.
For
an
extension
district
having
a
population
of
ninety
32
thousand
or
more
but
less
than
two
hundred
thousand,
an
annual
33
levy
of
six
and
three-fourths
cents
per
thousand
dollars
of
34
the
assessed
valuation
of
the
taxable
property
in
the
district
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up
to
a
maximum
of
six
hundred
ninety
thousand
dollars
payable
1
during
the
fiscal
year
commencing
July
1,
2026,
and
an
increase
2
of
fifteen
thousand
dollars
in
the
amount
payable
during
each
3
subsequent
fiscal
year.
4
e.
For
an
extension
district
having
a
population
of
two
5
hundred
thousand
or
more,
an
annual
levy
of
two
and
one-half
6
cents
per
thousand
dollars
of
the
assessed
valuation
of
7
the
taxable
property
in
the
district
up
to
a
maximum
of
one
8
million
fifty
thousand
dollars
payable
during
the
fiscal
9
year
commencing
July
1,
2026,
and
an
increase
of
twenty-five
10
thousand
dollars
in
the
amount
payable
during
each
subsequent
11
fiscal
year.
12
Sec.
92.
Section
176A.10,
subsection
2,
Code
2025,
is
13
amended
by
striking
the
subsection.
14
Sec.
93.
Section
312.2,
subsection
5,
paragraph
a,
Code
15
2025,
is
amended
to
read
as
follows:
16
a.
The
treasurer
of
state,
before
making
any
allotments
17
to
counties
under
this
section
,
shall
reduce
the
allotment
to
18
a
county
for
the
secondary
road
fund
by
the
amount
by
which
19
the
total
funds
that
the
county
transferred
or
provided
during
20
the
prior
fiscal
year
under
section
331.429,
subsection
1
,
21
paragraphs
“a”
,
“b”
,
“d”
,
and
“e”
,
are
less
than
seventy-five
22
fifty-one
percent
of
the
sum
of
the
following:
23
(1)
From
the
general
fund
of
the
county,
the
dollar
24
equivalent
of
a
tax
of
sixteen
and
seven-eighths
eleven
and
25
thirteen-sixteenths
cents
per
thousand
dollars
of
assessed
26
value
on
all
taxable
property
in
the
county.
27
(2)
From
the
rural
services
fund
of
the
county,
the
dollar
28
equivalent
of
a
tax
of
three
two
dollars
and
three-eighths
of
a
29
cent
ten
and
twenty-one
eightieths
cents
per
thousand
dollars
30
of
assessed
value
on
all
taxable
property
not
located
within
31
the
corporate
limits
of
a
city
in
the
county.
32
Sec.
94.
NEW
SECTION
.
444.25
Maximum
property
tax
levy
33
rates
——
adjustments.
34
1.
For
purposes
of
this
section:
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a.
“Budget
year”
is
the
fiscal
year
beginning
during
the
1
calendar
year
in
which
a
budget
is
certified.
2
b.
“Current
fiscal
year”
is
the
fiscal
year
ending
during
3
the
calendar
year
in
which
a
budget
for
the
budget
year
is
4
certified.
5
c.
“Rate-limited
property
tax
levy”
includes
any
ad
valorem
6
property
tax
levy
limited
by
law
to
a
specific
property
tax
7
levy
rate
per
one
thousand
dollars
of
assessed
value
used
to
8
calculate
taxes,
but
does
not
include
the
school
district
9
foundation
levy
under
section
257.3,
the
county
general
10
services
levy
under
section
331.423,
subsection
1,
the
county
11
rural
services
levy
under
section
331.423,
subsection
2,
the
12
city
general
fund
levy
under
section
384.1,
subsection
3,
13
the
physical
plant
and
equipment
levies
under
section
298.2,
14
the
school
district
bond
tax
under
section
298.18,
any
levy
15
under
chapter
28M,
a
levy
under
section
384.12,
subsection
16
1,
paragraph
“b”
,
levied
for
operation
and
maintenance
of
17
a
regional
transit
district,
a
levy
for
the
office
of
the
18
assessor
under
section
441.16,
any
levy
under
chapter
347
or
19
347A,
any
levy
under
chapter
386,
and
any
levy
under
chapter
20
357F,
357G,
or
422D.
In
addition,
“rate-limited
property
tax
21
levy”
does
not
include
levy
rates
used
in
the
calculations
under
22
section
312.2,
subsection
5,
paragraph
“a”
.
23
2.
For
the
fiscal
year
beginning
July
1,
2026,
each
24
rate-limited
property
tax
levy
may
only
be
imposed
if
the
25
governmental
entity
imposed
such
levy
for
the
fiscal
year
26
beginning
July
1,
2025,
and
shall,
by
operation
of
this
27
section,
be
limited
to
a
levy
rate
per
one
thousand
dollars
28
of
assessed
value
that
is
equal
to
one
thousand
multiplied
by
29
the
quotient
of
one
hundred
two
percent
of
the
current
fiscal
30
year’s
actual
property
tax
dollars
certified
for
such
levy
31
divided
by
the
total
assessed
value
used
to
calculate
such
32
taxes
for
the
budget
year,
but
not
less
than
a
levy
rate
per
one
33
thousand
dollars
of
assessed
value
that
results
in
an
amount
34
of
actual
property
tax
dollars
certified
for
levy
for
such
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levy
equal
to
one
hundred
and
one-half
percent
of
the
actual
1
property
tax
dollars
certified
for
such
levy
for
the
fiscal
2
year
beginning
July
1,
2025.
3
3.
For
the
fiscal
year
beginning
July
1,
2027,
and
each
4
fiscal
year
thereafter,
rate-limited
property
tax
levies
may
5
be
imposed
by
any
governmental
entity
otherwise
authorized
by
6
law,
regardless
of
whether
the
governmental
entity
imposed
the
7
levy
for
the
fiscal
year
beginning
July
1,
2025,
at
rates
not
8
to
exceed
those
established
by
the
general
assembly
by
statute
9
following
receipt
and
consideration
of
the
report
submitted
by
10
the
legislative
interim
committee
requested
to
be
established
11
by
the
legislative
council
in
this
division
of
this
Act.
12
Sec.
95.
NEW
SECTION
.
444.26
Use
of
bonds
and
indebtedness
13
for
general
operations
——
prohibition.
14
1.
For
purposes
of
this
section,
“general
operations”
means
15
services
or
activities
generally
funded
from
the
governmental
16
entity’s
general
fund,
which
are
necessary
for
the
operation
17
of
the
governmental
entity,
including
salaries
and
benefits,
18
or
which
are
for
the
health
and
welfare
of
the
governmental
19
entity’s
citizens
or
primarily
intended
to
benefit
all
20
residents
of
the
governmental
entity,
but
excluding
services
21
financed
by
statutory
funds
other
than
a
debt
service
fund.
22
2.
On
or
after
July
1,
2025,
a
city
or
county
shall
not
23
issue
bonds
or
other
indebtedness
payable
from
an
ad
valorem
24
property
tax
levy
for
the
purpose
of
funding
the
general
25
operations
of
the
city
or
general
operations
of
the
county,
as
26
applicable,
or
otherwise
use
proceeds
from
the
sale
of
bonds
or
27
issuance
of
other
indebtedness
to
fund
general
operations.
28
3.
The
city
finance
committee
shall
adopt
rules
under
29
chapter
17A
for
cities
to
implement
this
section.
The
county
30
finance
committee
shall
adopt
rules
under
chapter
17A
for
31
counties
to
implement
this
section.
32
Sec.
96.
PROPERTY
TAXATION
RATES
——
STUDY
COMMITTEE.
33
1.
a.
The
legislative
council
is
requested
to
establish
34
a
legislative
study
committee
during
the
2025
legislative
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interim
and
the
2026
legislative
interim
to
examine
appropriate
1
rates
of
property
taxation
imposed
by
governmental
entities
2
following
the
adjustments
to
assessment
limitations
and
levy
3
rate
limitations
made
in
this
Act,
determine
an
alternative
4
methodology
and
period
of
time
to
increase
the
percentage
of
5
actual
value
at
which
residential
and
multiresidential
property
6
are
subject
to
tax
under
section
441.21,
subsections
4
and
13,
7
from
seventy-five
percent
to
one
hundred
percent,
and
examine
8
the
imposition
and
administration
of
replacement
taxes
under
9
chapters
437A
and
437B.
10
b.
The
study
committee
shall
consist
of
the
following
voting
11
members
of
the
general
assembly:
12
(1)
Two
members
of
the
senate
appointed
by
the
majority
13
leader
of
the
senate.
14
(2)
One
member
of
the
senate
appointed
by
the
minority
15
leader
of
the
senate.
16
(3)
Two
members
of
the
house
of
representatives
appointed
by
17
the
speaker
of
the
house
of
representatives.
18
(4)
One
member
of
the
house
of
representatives
appointed
by
19
the
minority
leader
of
the
house
of
representatives.
20
2.
The
committee
shall
make
recommendations
to
and
file
a
21
report
with
the
general
assembly
relating
to
the
appropriate
22
rates
of
property
taxation
imposed
by
governmental
entities
23
and
appropriate
assessment
limitations
for
residential
and
24
multiresidential
property
following
enactment
of
this
Act,
no
25
later
than
January
15,
2027.
26
Sec.
97.
EFFECTIVE
DATE.
The
following
take
effect
January
27
1,
2026:
28
1.
The
sections
of
this
division
of
this
Act
amending
29
section
176A.10.
30
2.
The
section
of
this
division
of
this
Act
amending
section
31
312.2.
32
Sec.
98.
APPLICABILITY.
The
following
apply
to
fiscal
years
33
beginning
on
or
after
July
1,
2026:
34
1.
The
sections
of
this
division
of
this
Act
amending
35
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section
176A.10.
1
2.
The
section
of
this
division
of
this
Act
amending
section
2
312.2.
3
DIVISION
IX
4
ELDERLY
PROPERTY
TAXES
——
LOW
INCOME
5
Sec.
99.
Section
425.17,
subsection
2,
paragraph
a,
6
subparagraph
(3),
Code
2025,
is
amended
to
read
as
follows:
7
(3)
A
person
filing
a
claim
for
credit
under
this
subchapter
8
who
has
attained
the
age
of
seventy
years
on
or
before
December
9
31
of
the
base
year,
who
has
a
household
income
of
less
than
two
10
three
hundred
fifty
percent
of
the
federal
poverty
level,
as
11
defined
by
the
most
recently
revised
poverty
income
guidelines
12
published
by
the
United
States
department
of
health
and
human
13
services,
and
is
domiciled
in
this
state
at
the
time
the
claim
14
is
filed
or
at
the
time
of
the
person’s
death
in
the
case
of
a
15
claim
filed
by
the
executor
or
administrator
of
the
claimant’s
16
estate.
17
Sec.
100.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
18
deemed
of
immediate
importance,
takes
effect
upon
enactment.
19
Sec.
101.
RETROACTIVE
APPLICABILITY.
This
division
of
this
20
Act
applies
retroactively
to
assessment
years
beginning
on
or
21
after
January
1,
2025.
22
DIVISION
X
23
BRUCELLOSIS
AND
TUBERCULOSIS
ERADICATION
FUND
——
LEVY
24
Sec.
102.
Section
165.18,
subsections
2
and
3,
Code
2025,
25
are
amended
by
striking
the
subsections.
26
Sec.
103.
Section
331.512,
subsection
1,
paragraph
e,
Code
27
2025,
is
amended
by
striking
the
paragraph.
28
Sec.
104.
Section
331.559,
subsection
2,
Code
2025,
is
29
amended
by
striking
the
subsection.
30
Sec.
105.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
31
effect
upon
enactment.
32
Sec.
106.
APPLICABILITY.
This
division
of
this
Act
applies
33
to
property
taxes
due
and
payable
in
fiscal
years
beginning
on
34
or
after
July
1,
2025.
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DIVISION
XI
1
OFFICE
OF
THE
ASSESSOR
——
BUDGET
AND
LEVY
2
Sec.
107.
Section
441.16,
subsection
2,
Code
2025,
is
3
amended
by
adding
the
following
new
paragraph:
4
NEW
PARAGRAPH
.
c.
For
fiscal
years
beginning
on
or
after
5
July
1,
2026,
expenses
of
the
office
of
the
assessor,
the
6
examining
board,
and
the
board
of
review
related
to
duties
7
or
expenses
authorized
to
be
paid
using
funds
levied
under
8
sections
97B.9
and
97C.10,
and
insurance
expenses,
tort
claims,
9
and
judgments
of
such
offices
and
boards
shall
not
be
paid
from
10
the
levy
under
subsection
5.
11
Sec.
108.
Section
441.16,
subsection
5,
paragraph
a,
Code
12
2025,
is
amended
to
read
as
follows:
13
a.
(1)
(a)
Any
For
fiscal
years
beginning
before
July
1,
14
2026,
any
tax
for
the
maintenance
of
the
office
of
assessor
15
and
other
assessment
procedure
shall
be
levied
only
upon
the
16
property
in
the
area
assessed
by
the
assessor,
and
such
tax
17
levy
shall
not
exceed
sixty-seven
and
one-half
cents
per
18
thousand
dollars
of
assessed
value
in
the
assessing
area.
19
(b)
For
the
fiscal
year
beginning
July
1,
2026,
any
tax
for
20
the
maintenance
of
the
office
of
assessor
and
other
assessment
21
procedure
shall
be
levied
only
upon
the
property
in
the
area
22
assessed
by
the
assessor,
and
such
tax
levy
shall
not
exceed
23
a
rate
per
one
thousand
dollars
of
assessed
value
in
the
24
assessing
area
that
is
equal
to
one
thousand
multiplied
by
25
the
quotient
of
one
hundred
two
percent
of
the
current
fiscal
26
year’s
actual
property
tax
dollars
certified
for
such
levy,
27
excluding
the
amounts
attributable
to
the
types
of
expenses
28
described
in
subsection
2,
paragraph
“c”
,
divided
by
the
total
29
assessed
value
used
to
calculate
such
taxes
for
the
budget
30
year.
31
(c)
For
each
fiscal
year
beginning
on
or
after
July
1,
2027,
32
any
tax
for
the
maintenance
of
the
office
of
assessor
and
other
33
assessment
procedure
shall
be
levied
only
upon
the
property
in
34
the
area
assessed
by
the
assessor,
and
such
tax
levy
shall
not
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exceed
a
rate
per
one
thousand
dollars
of
assessed
value
in
1
the
assessing
area
that
is
equal
to
one
thousand
multiplied
by
2
the
quotient
of
one
hundred
two
percent
of
the
current
fiscal
3
year’s
actual
property
tax
dollars
certified
for
such
levy
4
divided
by
the
total
assessed
value
used
to
calculate
such
5
taxes
for
the
budget
year.
6
(d)
For
purposes
of
this
subparagraph,
“budget
year”
and
7
“current
fiscal
year”
mean
the
same
as
defined
in
section
8
331.423.
9
(2)
The
county
treasurer
shall
credit
the
sums
received
10
from
such
levy
to
a
separate
fund
to
be
known
as
the
assessment
11
expense
fund
and
from
which
fund
all
expenses
incurred
under
12
this
chapter
shall
be
paid.
In
the
case
of
a
county
where
there
13
is
more
than
one
assessor
the
treasurer
shall
maintain
separate
14
assessment
expense
funds
for
each
assessor.
15
Sec.
109.
Section
441.16,
subsection
6,
Code
2025,
is
16
amended
to
read
as
follows:
17
6.
The
assessor
shall
not
issue
requisitions
so
as
to
18
increase
the
total
expenditures
budgeted
for
the
operation
of
19
the
assessor’s
office.
However,
for
purposes
of
promoting
20
operational
efficiency,
the
assessor
shall
,
except
as
provided
21
in
subsection
2,
paragraph
“c”
,
have
authority
to
transfer
22
funds
budgeted
for
specific
items
for
the
operation
of
the
23
assessor’s
office
from
one
unexpended
balance
to
another;
such
24
transfer
shall
not
be
made
so
as
to
increase
the
total
amount
25
budgeted
for
the
operation
of
the
office
of
assessor,
and
no
26
funds
shall
be
used
to
increase
the
salary
of
the
assessor
or
27
the
salaries
of
permanent
deputy
assessors.
The
assessor
shall
28
issue
requisitions
for
the
examining
board
and
for
the
board
of
29
review
on
order
of
the
chairperson
of
each
board
and
for
costs
30
and
expenses
incident
to
assessment
appeals,
only
on
order
of
31
the
city
legal
department,
in
the
case
of
cities
and
of
the
32
county
attorney
in
the
case
of
counties.
33
Sec.
110.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
34
effect
January
1,
2026.
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Sec.
111.
APPLICABILITY.
This
division
of
this
Act
applies
1
to
property
taxes
due
and
payable
in
fiscal
years
beginning
on
2
or
after
July
1,
2026.
3
DIVISION
XII
4
REGIONAL
TRANSIT
DISTRICT
LEVY
5
Sec.
112.
Section
28M.5,
subsection
1,
Code
2025,
is
amended
6
to
read
as
follows:
7
1.
a.
The
commission,
with
the
approval
of
the
board
of
8
supervisors
of
participating
counties
and
the
city
council
9
of
participating
cities
in
the
chapter
28E
agreement,
may
,
10
subject
to
paragraph
“b”
,
levy
annually
a
tax
not
to
exceed
11
ninety-five
eighty
cents
per
thousand
dollars
of
the
assessed
12
value
of
all
taxable
property
in
a
regional
transit
district
13
to
the
extent
provided
in
this
section
.
The
chapter
28E
14
agreement
may
authorize
the
commission
to
levy
the
tax
at
15
different
rates
within
the
participating
cities
and
counties
in
16
amounts
sufficient
to
meet
the
revenue
responsibilities
of
such
17
cities
and
counties
as
allocated
in
the
budget
adopted
by
the
18
commission.
However,
for
a
city
participating
in
a
regional
19
transit
district,
the
total
of
all
the
tax
levies
imposed
in
20
the
city
pursuant
to
section
384.12,
subsection
1
,
paragraph
21
“b”
,
and
this
section
shall
not
exceed
the
aggregate
of
22
ninety-five
eighty
cents
per
thousand
dollars
of
the
assessed
23
value
of
all
taxable
property
in
the
participating
city.
24
b.
For
each
fiscal
year
beginning
on
or
after
July
1,
25
2026,
the
sum
of
property
tax
dollars
levied
for
the
regional
26
transit
district
under
this
subsection
and
property
tax
dollars
27
received
by
the
regional
transit
district
from
participating
28
cities
and
counties
shall
not
exceed
an
amount
equal
to
one
29
hundred
two
percent
of
the
sum
of
property
tax
dollars
levied
30
for
the
regional
transit
district
under
this
subsection
for
31
the
immediately
preceding
fiscal
year
and
property
tax
dollars
32
received
by
the
regional
transit
district
from
participating
33
cities
and
counties
for
the
immediately
preceding
fiscal
year.
34
Sec.
113.
Section
384.12,
subsection
1,
Code
2025,
is
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amended
to
read
as
follows:
1
1.
a.
A
tax
for
the
operation
and
maintenance
of
a
2
municipal
transit
system
or
for
operation
and
maintenance
of
a
3
regional
transit
district,
and
for
the
creation
of
a
reserve
4
fund
for
the
system
or
district,
in
an
amount
not
to
exceed
5
ninety-five
cents
per
thousand
dollars
of
assessed
value
each
6
year,
when
the
revenues
from
the
transit
system
or
district
are
7
insufficient
for
such
purposes.
8
b.
A
tax
for
the
operation
and
maintenance
of
a
regional
9
transit
district,
and
for
the
creation
of
a
reserve
fund
for
10
the
district
under
chapter
28M,
in
an
amount
not
to
exceed
11
eighty
cents
per
thousand
dollars
of
assessed
value
each
year,
12
when
the
revenues
from
the
district
are
insufficient
for
such
13
purposes.
14
Sec.
114.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
15
effect
January
1,
2026.
16
Sec.
115.
APPLICABILITY.
This
division
of
this
Act
applies
17
to
property
taxes
due
and
payable
in
fiscal
years
beginning
on
18
or
after
July
1,
2026.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
local
government
property
taxes,
23
financial
authority,
and
budgets.
24
DIVISION
I
——
COUNTY
PROPERTY
TAXES
AND
BUDGETS.
Code
25
section
331.423
establishes
a
levy
rate
limitation
for
the
26
general
county
services
levy
and
a
limitation
for
the
rural
27
county
services
levy.
The
bill
modifies
the
general
county
28
services
levy
rate
limitation
for
the
fiscal
year
beginning
29
July
1,
2026,
to
be
a
levy
rate
not
to
exceed
the
greater
of:
30
(1)
a
levy
rate
per
$1,000
of
assessed
value
equal
to
1,000
31
multiplied
by
the
quotient
of
102
percent
of
the
current
fiscal
32
year’s
(immediately
preceding
fiscal
year)
actual
property
tax
33
dollars
certified
for
levy
for
general
county
services
divided
34
by
the
remainder
of
the
total
assessed
value
used
to
calculate
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such
taxes
for
the
budget
year
minus
value
attributable
to
new
1
valuation,
as
defined
in
the
bill;
and
(2)
a
levy
rate
per
2
$1,000
of
assessed
value
that
results
in
an
amount
of
actual
3
property
tax
dollars
certified
for
levy
for
general
county
4
services
equal
to
100.5
percent
of
the
actual
property
tax
5
dollars
certified
for
such
levy
for
the
current
fiscal
year.
6
For
each
fiscal
year
beginning
on
or
after
July
1,
2027,
7
the
maximum
levy
rate
is
the
levy
rate
imposed
by
the
county
8
for
the
current
fiscal
year
unless
the
total
assessed
value,
9
excluding
new
valuation,
used
to
calculate
taxes
for
general
10
county
services
for
the
budget
year
is
equal
to
or
exceeds
102
11
percent
of
the
total
assessed
value
used
to
calculate
taxes
for
12
general
county
services
for
the
current
fiscal
year,
and
for
13
the
budget
year
beginning
July
1,
2027,
only,
not
less
than
14
a
levy
rate
per
$1,000
of
assessed
value
that
results
in
an
15
amount
of
actual
property
tax
dollars
certified
for
levy
equal
16
to
100.5
percent
of
the
actual
property
tax
dollars
certified
17
for
levy
for
the
current
fiscal
year.
18
If
the
total
assessed
value,
excluding
value
attributable
19
to
new
valuation,
used
to
calculate
taxes
for
general
county
20
services
for
the
budget
year
is
equal
to
or
exceeds
102
percent
21
of
the
total
assessed
value
used
to
calculate
taxes
for
general
22
county
services
for
the
current
fiscal
year,
the
levy
rate
23
imposed
shall
not
exceed
a
levy
rate
per
$1,000
of
assessed
24
value
that
is
equal
to
1,000
multiplied
by
the
quotient
25
obtained
by
dividing
the
product
of
the
budget
adjustment
26
factor,
as
defined
in
the
bill
and
which
ranges
from
102
27
percent
to
105
percent
depending
upon
the
amount
of
annual
28
increase
in
the
consumer
price
index,
multiplied
by
the
current
29
fiscal
year’s
actual
property
tax
dollars
certified
for
levy
30
by
the
remainder
of
the
total
assessed
value
used
to
calculate
31
such
taxes
for
the
budget
year
minus
value
attributable
to
new
32
valuation.
33
The
bill
similarly
modifies
the
maximum
levy
rate
for
rural
34
county
services
for
fiscal
years
beginning
on
or
after
July
1,
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2026.
1
The
division
takes
effect
January
1,
2026,
and
applies
to
2
county
taxes
and
budgets
for
fiscal
years
beginning
on
or
after
3
July
1,
2026.
4
DIVISION
II
——
CITY
PROPERTY
TAXES
AND
BUDGETS.
Code
5
section
384.1
establishes
the
city
general
fund
levy
and
limits
6
on
the
levy
rate.
The
bill
modifies
the
general
fund
levy
7
rate
limitation
for
the
fiscal
year
beginning
July
1,
2026,
8
to
be
a
levy
rate
not
to
exceed
the
greater
of:
(1)
a
levy
9
rate
per
$1,000
of
assessed
value
equal
to
1,000
multiplied
10
by
the
quotient
of
102
percent
of
the
current
fiscal
year’s
11
(immediately
preceding
fiscal
year)
actual
property
tax
dollars
12
certified
for
levy
divided
by
the
remainder
of
the
total
13
assessed
value
used
to
calculate
such
taxes
for
the
budget
year
14
minus
value
attributable
to
new
valuation,
as
defined
in
the
15
bill;
and
(2)
a
levy
rate
per
$1,000
of
assessed
value
that
16
results
in
an
amount
of
actual
property
tax
dollars
certified
17
for
levy
equal
to
100.5
percent
of
the
actual
property
tax
18
dollars
certified
for
such
levy
for
the
current
fiscal
year.
19
For
each
fiscal
year
beginning
on
or
after
July
1,
2027,
the
20
maximum
levy
rate
is
the
levy
rate
imposed
by
the
city
for
the
21
current
fiscal
year
unless
the
total
assessed
value,
excluding
22
new
valuation,
used
to
calculate
taxes
for
the
budget
year
is
23
equal
to
or
exceeds
102
percent
of
the
total
assessed
value
24
used
to
calculate
taxes
for
the
current
fiscal
year,
and
for
25
the
budget
year
beginning
July
1,
2027,
only,
not
less
than
26
a
levy
rate
per
$1,000
of
assessed
value
that
results
in
an
27
amount
of
actual
property
tax
dollars
certified
for
levy
equal
28
to
100.5
percent
of
the
actual
property
tax
dollars
certified
29
for
levy
for
the
current
fiscal
year.
30
If
the
total
assessed
value,
excluding
value
attributable
31
to
new
valuation,
used
to
calculate
taxes
for
the
city
general
32
fund
for
the
budget
year
is
equal
to
or
exceeds
102
percent
33
of
the
total
assessed
value
used
to
calculate
taxes
for
the
34
current
fiscal
year,
the
levy
rate
imposed
shall
not
exceed
a
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levy
rate
per
$1,000
of
assessed
value
that
is
equal
to
1,000
1
multiplied
by
the
quotient
obtained
by
dividing
the
product
2
of
the
budget
adjustment
factor,
as
defined
in
the
bill
and
3
which
ranges
from
102
percent
to
105
percent
depending
upon
4
the
amount
of
annual
increase
in
the
consumer
price
index,
5
multiplied
by
the
current
fiscal
year’s
actual
property
tax
6
dollars
certified
for
levy
by
the
remainder
of
the
total
7
assessed
value
used
to
calculate
such
taxes
for
the
budget
year
8
minus
value
attributable
to
new
valuation.
9
The
bill
also
establishes
a
methodology
to
determine
a
10
maximum
levy
rate
for
a
city
that
is
not
imposing
a
general
11
fund
levy
in
the
current
fiscal
year.
12
The
division
takes
effect
January
1,
2026,
and
applies
to
13
property
taxes
and
budgets
for
fiscal
years
beginning
on
or
14
after
July
1,
2026.
15
DIVISION
III
——
SCHOOL
TAXES
AND
BUDGETS.
As
part
of
16
the
state
school
foundation
program,
for
school
budget
17
years
beginning
on
or
after
July
1,
2022,
Code
section
257.1
18
establishes
the
regular
program
foundation
base
to
be
88.4
19
percent
of
the
regular
program
state
cost
per
pupil.
Beginning
20
with
the
budget
year
beginning
July
1,
2026,
the
bill
increases
21
that
percentage
to
100
percent.
Similarly,
the
bill
increases
22
the
special
education
support
services
foundation
base
23
percentage
from
79
percent
to
100
percent.
24
Code
section
257.3
requires
school
districts
to
levy
a
25
foundation
property
tax
of
$5.40
per
$1,000
of
assessed
value
26
on
all
taxable
property
in
the
school
district.
The
bill
27
reduces
the
foundation
property
tax
levy
rate
to
$4.48662
per
28
$1,000
of
assessed
value
for
budget
years
beginning
on
or
after
29
July
1,
2026.
30
Code
section
257.3
provides
an
exception
to
the
foundation
31
property
tax
levy
rate
of
$5.40
for
those
school
districts
that
32
have
recently
been
reorganized.
Such
districts
are
provided
33
reduced
foundation
property
tax
levy
rates
for
three
years
34
following
the
reorganization.
The
bill
adjusts
those
reduced
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rates
for
reorganizations
that
take
effect
on
or
after
July
1
1,
2026,
to
reflect
the
reduction
made
in
the
bill
to
the
2
foundation
property
tax
levy
imposed
by
school
districts
that
3
are
not
subject
to
a
reorganization
and
eliminates
certain
4
supplemental
aid
related
to
such
reorganized
school
district
5
rates
for
budget
years
beginning
on
or
after
July
1,
2026.
6
The
bill
eliminates
certain
property
tax
adjustment
aid
7
under
Code
section
257.15(2)
and
(3)
for
fiscal
years
beginning
8
on
or
after
July
1,
2026.
9
The
bill
eliminates
the
$24
million
general
fund
10
appropriation
for
adjusted
additional
property
tax
levy
aid
11
under
Code
section
257.15(4)
for
fiscal
years
beginning
on
12
or
after
July
1,
2026.
The
bill
also
eliminates
the
annual
13
appropriation
of
the
balance
of
the
property
tax
equity
and
14
relief
fund
under
Code
section
257.16A
for
purposes
designated
15
under
Code
section
257.15(4)
and
requires
remaining
moneys
at
16
the
end
of
a
specified
fiscal
year
to
be
transferred
back
to
17
the
funds
from
which
they
were
received.
18
The
bill
eliminates
the
payment
of
school
district
property
19
tax
replacement
payments
for
fiscal
years
beginning
on
or
after
20
July
1,
2026.
21
The
bill
eliminates
the
annual
appropriation
of
moneys
in
22
the
foundation
base
supplement
fund
for
fiscal
years
beginning
23
on
or
after
July
1,
2026,
and
requires
the
remaining
moneys
24
at
the
end
of
a
specified
fiscal
year
to
be
transferred
for
25
deposit
in
the
secure
an
advanced
vision
for
education
fund.
26
The
bill
eliminates
transfers
from
the
secure
an
advanced
27
vision
for
education
fund
to
the
property
tax
equity
and
relief
28
fund
and
the
foundation
base
supplement
fund
for
fiscal
years
29
beginning
on
or
after
July
1,
2026,
and
instead
provides
that
30
such
amounts
shall
be
credited
to
the
state
general
fund
to
be
31
used
for
increased
foundation
aid
resulting
from
the
increase
32
in
the
regular
program
foundation
base
per
pupil
to
100
percent
33
of
the
regular
program
state
cost
per
pupil.
34
In
Code
chapters
425A
(family
farm
tax
credit)
and
426
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(agricultural
land
tax
credit),
the
bill
replaces
references
1
to
the
school
foundation
property
tax
levy
rate
($5.40)
with
2
citations
to
the
appropriate
provision
of
the
Code
section
3
establishing
the
foundation
property
tax
rate.
4
The
bill
requires
each
school
district
with
an
unexpended
5
fund
balance
in
the
district’s
management
levy
fund
under
6
Code
section
298A.3
at
the
conclusion
of
the
fiscal
year
7
beginning
July
1,
2024,
that
exceeds
an
amount
equal
to
the
8
total
expenditures
from
the
district’s
management
fund
for
the
9
fiscal
year
beginning
July
1,
2024,
to
certify
such
unexpended
10
fund
balance
and
expenditure
amounts,
including
any
reserved
11
or
designated
amounts
in
the
fund
and
the
purposes
therefor,
12
to
the
school
budget
review
committee
by
November
15,
2025.
13
The
committee
is
then
required
to
conduct
a
review
of
the
14
unexpended
fund
balances
and
expenditures
of
school
district
15
management
levy
funds
certified
under
the
bill.
By
February
16
1,
2026,
the
committee
shall
make
recommendations
to
the
17
general
assembly
for
establishing
district
management
levy
fund
18
unexpended
fund
balance
limitations
for
fiscal
years
beginning
19
on
or
after
July
1,
2027,
including
recommendations
for
20
limitations
based
on
a
percentage
of
the
district’s
management
21
levy
fund
expenditures
and
recommendations
for
management
levy
22
limitations
and
expenditure
requirements
for
excess
funds.
23
The
bill
amends
several
provisions
relating
to
the
state
24
school
foundation
program
funding
formula
to
include
funding
25
for
the
media
services
funding
and
educational
services
funding
26
under
Code
section
257.37
to
be
included
and
funded
as
part
of
27
foundation
aid
paid
by
the
state
instead
of
funding
through
a
28
school
district’s
additional
property
tax
under
Code
section
29
257.4
for
school
budget
years
beginning
on
or
after
July
1,
30
2026.
31
The
bill
reduces
by
approximately
70
percent
the
maximum
32
levy
rates
for
the
regular
and
voter-approved
physical
plant
33
and
equipment
levy
under
Code
section
298.2
and
the
school
34
district
bond
tax
under
Code
section
298.18.
The
bill
also
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repeals
an
obsolete
provision
relating
to
levy
adjustments
1
authorized
to
occur
before
June
30,
2007,
in
Code
section
2
298.18A.
3
The
bill
also
amends
Code
section
298.4
by
providing
that
for
4
fiscal
years
beginning
on
or
after
July
1,
2027,
if
a
school
5
district’s
unexpended
fund
balance
of
the
district’s
management
6
levy
fund
is
equal
to
or
exceeds
a
specified
percentage
of
the
7
average
annual
expenditures
from
the
district’s
management
8
levy
fund
for
the
three
consecutive
fiscal
years
immediately
9
preceding
the
base
year,
the
board
of
directors
may
not
certify
10
a
district
management
levy
for
the
fiscal
year.
Additionally,
11
if
a
school
district
is
not
prohibited
from
certifying
a
levy
12
under
the
bill,
the
maximum
amount
that
the
board
of
directors
13
may
certify
for
levy
under
the
district
management
levy
shall
14
be
an
amount
equal
to
the
remainder
of
a
specified
percentage
15
of
the
average
annual
expenditures
from
the
district’s
16
management
levy
fund
for
the
three
consecutive
fiscal
years
17
immediately
preceding
the
base
year
minus
the
district’s
18
management
levy
fund
unexpended
fund
balance
for
the
fiscal
19
year
preceding
the
base
year.
20
Except
for
the
section
of
the
division
amending
Code
section
21
257.31,
which
relates
to
the
school
budget
review
committee,
22
this
division
of
the
bill
takes
effect
January
1,
2026,
and
23
applies
to
fiscal
years
and
school
budget
years
beginning
on
24
or
after
July
1,
2026.
25
DIVISION
IV
——
PROPERTY
VALUATIONS
AND
ASSESSMENT
26
LIMITATIONS.
Code
section
441.21
provides
that
the
actual
27
value
of
agricultural
property
shall
be
determined
on
the
28
basis
of
productivity
and
net
earning
capacity
and
that
any
29
formula
or
method
employed
to
determine
productivity
and
net
30
earning
capacity
of
property
shall
be
adopted
in
full
by
rule
31
of
the
department
of
revenue.
The
bill
amends
that
provision
32
by
specifying
that
for
assessment
years
beginning
on
or
after
33
January
1,
2026,
structures
on
agricultural
land
constructed
on
34
or
after
January
1,
2026,
that
are
not
agricultural
dwellings
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shall
not
be
included
in
determination
of
productivity
and
1
net
earning
capacity
of
agricultural
property
and
shall
not
2
be
allocated
any
portion
of
the
total
county
productivity
3
value
so
determined.
Such
agricultural
structures
shall
4
instead
be
valued
according
to
the
structure’s
replacement
5
cost
less
depreciation
and
obsolescence
and
the
structure’s
6
assessed
value
subject
to
taxation
prior
to
application
of
7
any
assessment
limitation
shall
be
equal
to
the
product
of
8
the
structure’s
value
multiplied
by
the
agricultural
factor,
9
as
determined
in
701
IAC
102.3(2)
or
succeeding
rule
of
the
10
department.
The
bill
also
provides
that
such
structures
shall
11
be
treated
similarly
to
agricultural
structures
constructed
12
before
January
1,
2026,
when
applying
any
equalization
order
13
of
the
department
of
revenue.
14
The
bill
modifies
the
list
of
examples
of
abnormal
property
15
transactions
that
are
to
be
excluded
from
consideration
or
16
adjusted
to
eliminate
distortions
of
market
value
when
valuing
17
property
to
include
built-to-suit
construction,
sale-leaseback
18
transactions,
leased
fee
sales,
and
instead
of
sales
to
19
immediate
family,
sales
between
related
parties.
20
Code
section
441.21(4)
establishes
the
calculation
for
21
assessment
limitations
(rollback)
for
residential
property
and
22
agricultural
property.
The
bill
strikes
the
calculation
of
23
the
residential
property
assessment
limitation
for
assessment
24
years
beginning
on
or
after
January
1,
2025,
and
strikes
25
the
provision
within
the
agricultural
property
assessment
26
limitation
calculation
that
limits
growth
of
residential
or
27
agricultural
property
to
the
growth
in
the
other
classification
28
(ag-residential
tie).
The
bill
provides
that
residential
29
property
is
assessed
at
75
percent
of
the
property’s
actual
30
value
for
assessment
years
beginning
January
1,
2025,
and
31
January
1,
2026.
The
bill
then
increases
the
percentage
of
32
actual
value
at
which
residential
property
is
assessed
by
2.5
33
percent
each
assessment
year
until
the
percentage
reaches
100
34
percent
for
assessment
years
beginning
on
or
after
January
1,
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By
operation
of
law
and
through
changes
in
the
bill,
1
all
other
classifications
of
property,
except
for
agricultural
2
property,
residential
property,
and
multiresidential
property,
3
are
assessed
at
100
percent
of
actual
value
for
assessment
4
years
beginning
on
or
after
January
1,
2025.
5
The
bill
modifies
provisions
governing
the
calculation
6
of
payments
made
to
local
governments
under
Code
section
7
441.21(5)(e)
that
are
made
to
replace
property
taxes
due
to
the
8
application
of
the
residential
property
assessment
limitation
9
to
certain
portions
of
commercial
and
industrial
property
10
valuations
and
eliminates
the
appropriation
for
such
payments
11
for
fiscal
years
beginning
on
or
after
July
1,
2026,
due
to
12
elimination
of
the
assessment
limitations.
13
The
bill
also
reestablishes
a
multiresidential
property
14
classification
for
assessment
years
beginning
on
or
after
15
January
1,
2026,
that
includes
types
of
property
that
were
16
classified
as
multiresidential
property
for
assessment
years
17
beginning
before
January
1,
2022.
Such
property
is
included
18
within
the
residential
property
classification
under
current
19
law.
Under
the
bill,
for
purposes
of
equalization
under
Code
20
sections
441.47
through
441.49,
multiresidential
property
shall
21
be
considered
residential
property.
The
bill
provides
that
22
multiresidential
property
is
assessed
at
75
percent
of
actual
23
value
for
the
assessment
year
beginning
January
1,
2026.
The
24
bill
then
increases
the
percentage
of
actual
value
at
which
25
multiresidential
property
is
assessed
by
2.5
percent
each
26
assessment
year
until
the
percentage
reaches
100
percent
for
27
assessment
years
beginning
on
or
after
January
1,
2036.
28
Except
for
provisions
relating
to
the
reestablishment
of
the
29
multiresidential
property
classification,
this
division
of
the
30
bill
applies
retroactively
to
assessment
years
beginning
on
or
31
after
January
1,
2025.
32
DIVISION
V
——
DISABLED
VETERAN
AND
HOMESTEAD
CREDITS
AND
33
EXEMPTIONS.
Starting
with
the
assessment
year
beginning
34
January
1,
2025,
the
bill
replaces
the
homestead
property
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tax
credit,
other
than
the
portion
of
the
credit
provided
1
to
certain
disabled
veterans,
with
a
homestead
property
tax
2
exemption.
For
assessment
years
beginning
on
or
after
January
3
1,
2025,
the
exemption
amount
is
25
percent
of
taxable
value,
4
not
to
exceed
$125,000
in
taxable
value.
The
bill
specifies
5
that
the
elderly
homestead
exemption
of
$6,500
in
taxable
value
6
applies
in
addition
to
the
homestead
exemption
established
in
7
the
bill.
8
The
bill
moves
the
disabled
veteran
homestead
credit
from
9
Code
section
425.15
to
Code
section
425.1,
and
makes
changes
10
to
the
scope
of
the
disabled
veteran
homestead
credit
for
new
11
applicants.
Currently,
a
disabled
veteran
with
a
100
percent
12
permanent
and
total
disability
rating
receives
a
homestead
13
credit
on
the
entire
amount
of
tax
levied
on
the
homestead.
14
The
bill
specifies
that
a
separate
application
form
is
required
15
to
claim
the
disabled
veteran
homestead
credit.
The
bill
16
does
not
change
the
homestead
credit
for
an
eligible
disabled
17
veteran
who
makes
an
application
for
the
homestead
credit
18
before
July
1,
2025.
For
a
disabled
veteran
who
makes
an
19
application
for
the
homestead
credit
on
or
after
July
1,
2025,
20
the
bill
changes
the
definition
of
“homestead”
to
exclude
21
appurtenances
and
limits
the
size
of
the
homestead
credit
to
22
property
on
one-half
acre.
23
The
state
continues
to
reimburse
local
governments
for
the
24
homestead
credit,
which
for
assessment
years
beginning
on
or
25
after
January
1,
2025,
includes
only
the
disabled
veterans
26
homestead
credit,
but
does
not
reimburse
local
governments
for
27
the
homestead
exemption
under
current
law
and
in
the
bill.
28
The
bill
provides
that
homestead
owners
who
have
filed
for
29
or
who
are
receiving
homestead
credits
or
exemptions
before
30
the
effective
date
of
this
division
of
the
bill
shall
continue
31
to
receive
such
credits
and
exemptions
for
which
the
owner
is
32
eligible
for
assessment
years
beginning
on
or
after
January
33
1,
2025,
without
refiling,
and,
if
the
owner
is
eligible,
34
shall
receive
the
exemption
under
Code
section
425.1A(1A),
as
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enacted
in
this
division
of
the
bill,
without
filing
for
such
1
exemption.
2
This
division
of
the
bill
applies
retroactively
to
3
assessment
years
beginning
on
or
after
January
1,
2025.
4
DIVISION
VI
——
MILITARY
SERVICE
PROPERTY
TAX
EXEMPTION.
5
Under
current
law,
a
veteran
receives
a
property
tax
exemption
6
of
$4,000
in
taxable
value
on
property
owned
by
the
veteran.
7
The
bill
increases
the
veterans
property
tax
exemption
from
8
$4,000
to
the
following
exemption
amounts:
for
the
assessment
9
year
beginning
January
1,
2025,
$5,000;
for
the
assessment
year
10
beginning
January
1,
2026,
$6,000;
and
for
assessment
years
11
beginning
on
or
after
January
1,
2027,
$7,000.
12
The
division
applies
retroactively
to
assessment
years
13
beginning
on
or
after
January
1,
2025.
14
DIVISION
VII
——
HOSPITAL
AND
EMERGENCY
MEDICAL
SERVICES
15
PROPERTY
TAX
LEVIES.
The
bill
provides
that
for
fiscal
years
16
beginning
on
or
after
July
1,
2026,
any
property
tax
levy
17
imposed
for
a
county
hospital
under
Code
chapter
347
that
18
is
limited
by
law
to
a
specific
property
tax
levy
rate
per
19
$1,000
of
assessed
value
shall
not
exceed
a
levy
rate
per
20
$1,000
of
assessed
value
that
is
equal
to
1,000
multiplied
by
21
the
quotient
obtained
by
dividing
the
product
of
the
budget
22
adjustment
factor
multiplied
by
the
current
fiscal
year’s
23
actual
property
tax
dollars
certified
for
such
levy
by
the
24
remainder
of
the
total
assessed
value
used
to
calculate
such
25
taxes
for
the
budget
year
minus
value
attributable
to
new
26
valuation.
The
bill
defines
“budget
adjustment
factor”,
27
“budget
year”,
“current
fiscal
year”,
and
“new
valuation”
to
28
mean
the
same
as
defined
in
Code
section
331.423,
as
amended
29
in
the
bill.
30
The
bill
establishes
similar
limitations
for
levies
imposed
31
under
Code
chapters
347A
(county
hospitals
payable
from
32
revenue),
357F
(emergency
medical
services
districts),
357G
33
(city
emergency
medical
services
districts),
and
422D
(optional
34
taxes
for
emergency
medical
services)
that
are
limited
by
law
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to
a
specific
property
tax
levy
rate
per
$1,000
of
assessed
1
value.
2
DIVISION
VIII
——
PROPERTY
TAX
LEVY
RATES.
The
bill
3
establishes
a
reduction
for
rate-limited
property
tax
levies.
4
The
bill
defines
“rate-limited
property
tax
levy”
to
be
any
5
ad
valorem
property
tax
levy
limited
by
law
to
a
specific
6
property
tax
levy
rate
per
$1,000
of
assessed
value
used
to
7
calculate
taxes,
but
does
not
include
the
school
district
8
foundation
levy
under
Code
section
257.3,
the
county
general
9
services
levy
under
Code
section
331.423(1),
the
county
rural
10
services
levy
under
Code
section
331.423(2),
the
city
general
11
fund
levy
under
Code
section
384.1(3),
the
physical
plant
12
and
equipment
levies
under
Code
section
298.2,
the
school
13
district
bond
tax
under
Code
section
298.18,
any
levy
under
14
Code
chapter
28M,
a
levy
under
Code
section
384.12(1)(b)
levied
15
for
operation
and
maintenance
of
a
regional
transit
district,
a
16
levy
for
the
office
of
the
assessor
under
Code
section
441.16,
17
any
levy
under
Code
chapter
386,
any
levy
under
Code
chapter
18
347
or
347A,
and
any
levy
under
Code
chapter
357F,
357G,
or
19
422D.
In
addition,
“rate-limited
property
tax
levy”
does
not
20
include
levy
rates
used
in
the
calculations
under
Code
section
21
312.2(5)(a).
22
For
the
fiscal
year
beginning
July
1,
2026,
each
23
rate-limited
property
tax
levy
may
only
be
imposed
if
the
24
governmental
entity
imposed
such
levy
for
the
fiscal
year
25
beginning
July
1,
2025,
and
shall,
by
operation
of
the
bill,
26
be
limited
to
a
levy
rate
that
is
equal
to
1,000
multiplied
27
by
the
quotient
of
102
percent
of
the
current
fiscal
year’s
28
actual
property
tax
dollars
certified
for
such
levy
divided
29
by
the
total
assessed
value
used
to
calculate
such
taxes
for
30
the
budget
year,
but
not
less
than
a
levy
rate
per
$1,000
of
31
assessed
value
that
results
in
an
amount
of
actual
property
tax
32
dollars
certified
for
levy
for
such
levy
equal
to
100.5
percent
33
of
the
actual
property
tax
dollars
certified
for
such
levy
for
34
the
fiscal
year
beginning
July
1,
2025.
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For
the
fiscal
year
beginning
July
1,
2027,
and
each
fiscal
1
year
thereafter,
rate-limited
property
tax
levies
may
be
2
imposed
by
any
governmental
entity
otherwise
authorized
by
law,
3
regardless
of
whether
the
governmental
entity
imposed
the
levy
4
for
the
fiscal
year
beginning
July
1,
2025,
at
rates
not
to
5
exceed
those
established
by
the
general
assembly
by
statute
6
following
receipt
and
consideration
of
the
report
submitted
by
7
the
legislative
interim
committee
requested
to
be
established
8
by
the
legislative
council
in
this
division
of
the
bill.
9
The
bill
also
provides
that,
on
or
after
July
1,
2025,
a
city
10
or
county
shall
not
issue
bonds
or
other
indebtedness
payable
11
from
an
ad
valorem
property
tax
levy
for
the
purpose
of
funding
12
the
general
operations
of
the
city
or
general
operations
of
13
the
county,
as
applicable,
or
otherwise
use
proceeds
from
the
14
sale
of
bonds
or
issuance
of
other
indebtedness
to
fund
general
15
operations.
The
bill
defines
“general
operations”
to
mean
16
services
or
activities
generally
funded
from
the
governmental
17
entity’s
general
fund,
which
are
necessary
for
the
operation
18
of
the
governmental
entity,
including
salaries
and
benefits,
19
or
which
are
for
the
health
and
welfare
of
the
governmental
20
entity’s
citizens
or
primarily
intended
to
benefit
all
21
residents
of
the
governmental
entity,
but
excluding
services
22
financed
by
statutory
funds
other
than
a
debt
service
fund.
23
The
city
finance
committee
is
required
to
adopt
rules
under
24
Code
chapter
17A
for
cities
to
implement
the
new
Code
section
25
governing
funding
of
general
operations.
The
county
finance
26
committee
is
required
to
adopt
rules
under
Code
chapter
17A
for
27
counties
to
implement
the
new
Code
section
governing
funding
28
of
general
operations.
29
The
bill
updates
the
calculation
methodologies
for
30
agricultural
extension
levies
under
Code
section
176A.10
and
31
reduces
levy
rates
used
to
make
certain
calculations
related
to
32
the
secondary
road
fund
allocations
under
Code
section
312.2.
33
The
bill
requests
the
legislative
council
to
establish
a
34
legislative
study
committee
during
the
2025
legislative
interim
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and
the
2026
legislative
interim
to
examine
appropriate
rates
1
of
property
taxation
imposed
by
governmental
entities
following
2
enactment
of
the
bill,
determine
an
alternative
methodology
and
3
period
of
time
to
increase
the
percentage
of
actual
value
at
4
which
residential
and
multiresidential
property
are
subject
to
5
tax
from
75
percent
to
100
percent,
and
examine
the
imposition
6
and
administration
of
replacement
taxes
under
Code
chapters
7
437A
and
437B.
The
study
committee
shall
consist
of
six
8
voting
members
of
the
general
assembly.
Two
members
shall
be
9
appointed
by
the
majority
leader
of
the
senate,
one
member
10
appointed
by
the
minority
member
of
the
senate,
two
members
11
appointed
by
the
speaker
of
the
house
of
representatives,
12
and
one
member
appointed
by
the
minority
leader
of
the
house
13
of
representatives.
The
study
committee
is
required
to
make
14
recommendations
to
the
general
assembly
by
January
15,
2027.
15
DIVISION
IX
——
ELDERLY
PROPERTY
TAXES
——
LOW
INCOME.
The
16
bill
modifies
the
eligibility
for
the
property
tax
credit
for
17
persons
ages
70
and
older
under
Code
chapter
425,
subchapter
18
II.
Currently,
a
person
filing
a
claim
for
the
property
tax
19
credit
who
is
at
least
70
years
of
age
and
who
has
a
household
20
income
of
less
than
250
percent
of
the
federal
poverty
level
is
21
eligible
to
receive
a
specified
credit
amount
against
property
22
taxes
due
on
the
claimant’s
homestead.
The
bill
increases
the
23
household
income
threshold
for
eligibility
from
less
than
250
24
percent
of
the
federal
poverty
level
to
less
than
300
percent
25
of
the
federal
poverty
level.
26
The
division
takes
effect
upon
enactment
and
applies
27
retroactively
to
assessment
years
beginning
on
or
after
January
28
1,
2025.
29
DIVISION
X
——
BRUCELLOSIS
AND
TUBERCULOSIS
ERADICATION
FUND
30
——
LEVY.
Code
section
165.18
authorizes
the
secretary
of
31
agriculture
to
direct
the
board
of
supervisors
of
each
county
32
to
levy
an
amount
sufficient
to
pay
the
expenses
estimated
to
33
be
incurred
from
the
brucellosis
and
tuberculosis
eradication
34
fund
for
the
following
fiscal
year,
subject
to
a
maximum
levy
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of
33.75
cents
per
$1,000.
The
bill
strikes
the
authority
to
1
levy
such
a
tax
beginning
with
property
taxes
due
and
payable
2
in
fiscal
years
beginning
July
1,
2025.
The
division
takes
3
effect
upon
enactment.
4
DIVISION
XI
——
OFFICE
OF
THE
ASSESSOR
——
BUDGET
AND
LEVY.
5
Code
section
441.16(5)
authorizes
a
$0.675
per
$1,000
of
6
assessed
value
property
tax
levy
for
the
maintenance
of
the
7
office
of
the
assessor
and
other
assessment
procedure.
The
8
bill
provides
that
for
fiscal
years
beginning
on
or
after
9
July
1,
2026,
expenses
of
the
office
of
the
assessor,
the
10
examining
board,
and
the
board
of
review
related
to
duties
or
11
expenses
authorized
to
be
paid
using
funds
levied
under
Code
12
sections
97B.9
and
97C.10,
and
insurance
expenses,
tort
claims,
13
and
judgments
of
such
offices
and
boards
shall
not
be
paid
14
from
the
levy
under
Code
section
441.16(5).
The
bill
also
15
provides
that
the
levy
under
Code
section
441.16(5)
for
the
16
fiscal
year
beginning
July
1,
2026,
shall
not
exceed
a
rate
17
per
$1,000
of
assessed
value
that
is
equal
to
1,000
multiplied
18
by
the
quotient
of
102
percent
of
the
current
fiscal
year’s
19
actual
property
tax
dollars
certified
for
such
levy,
excluding
20
amounts
attributable
to
specified
types
of
expenses
under
21
Code
sections
97B.9
and
97C.10
and
insurance
expenses,
tort
22
claims,
and
judgments,
divided
by
the
total
assessed
value
23
used
to
calculate
such
taxes
for
the
budget
year.
The
bill
24
then
provides
that
for
each
fiscal
year
beginning
on
or
after
25
July
1,
2027,
any
tax
for
the
maintenance
of
the
office
of
26
assessor
and
other
assessment
procedure
shall
be
levied
only
27
upon
the
property
in
the
area
assessed
by
the
assessor,
and
28
such
tax
levy
shall
not
exceed
a
rate
per
$1,000
of
assessed
29
value
in
the
assessing
area
that
is
equal
to
1,000
multiplied
30
by
the
quotient
of
102
percent
of
the
current
fiscal
year’s
31
actual
property
tax
dollars
certified
for
such
levy
divided
by
32
the
total
assessed
value
used
to
calculate
such
taxes
for
the
33
budget
year.
34
The
division
takes
effect
January
1,
2026,
and
applies
to
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property
taxes
due
and
payable
in
fiscal
years
beginning
on
or
1
after
July
1,
2026.
2
DIVISION
XII
——
REGIONAL
TRANSIT
DISTRICT
LEVY.
Code
3
section
28M.5
authorizes
a
regional
transit
district
to
levy
a
4
property
tax
not
to
exceed
$0.95
per
$1,000
of
assessed
value.
5
The
bill
lowers
that
levy
to
$0.80
per
$1,000
of
assessed
6
value
and
makes
corresponding
changes
to
other
provisions
of
7
law
governing
the
levy
rates
for
municipal
transit
systems
and
8
regional
transit
districts.
In
addition,
the
bill
establishes
9
an
annual
limitation
on
the
total
amount
of
property
taxes
10
that
a
regional
transit
district
may
receive.
For
each
fiscal
11
year
beginning
on
or
after
July
1,
2026,
the
total
amount
12
of
property
taxes
for
support
of
a
regional
transit
district
13
shall
not
exceed
102
percent
of
the
total
amount
of
property
14
taxes
for
support
of
the
regional
transit
district
for
the
15
immediately
preceding
fiscal
year.
16
The
division
takes
effect
January
1,
2026,
and
applies
to
17
property
taxes
due
and
payable
in
fiscal
years
beginning
on
or
18
after
July
1,
2026.
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