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IA HSB596

SB

Official Source

Status

Introduced

1/21/2026

Primary Sponsor

Ways and Means

Click for details

Origin

House of Representatives

91st General Assembly

AI Summary

  • Caps annual property tax levy increases at 2% for local governments (excluding school districts) on existing property, starting July 1, 2027, with additional revenue allowed only from new construction, improvements, or boundary changes like annexation.
  • Defines "governmental entity" broadly to include cities, counties, intergovernmental entities, and special purpose districts with property tax authority, but explicitly excludes school districts from the levy limitations.
  • Removes the ability for local governments to suspend property tax levy limitations under existing Code Section 24.48, preventing override of the new caps.
  • Requires the Iowa Department of Management to reduce property tax levies on a pro rata basis if a governmental entity certifies a budget that violates the 2% cap.
  • Allows adjustments to the maximum levy amount for voter-approved property tax levies that begin or end between budget years.

Legislative Description

A bill for an act relating to local government taxes, budgets, and authority, by establishing property tax limitations and modifying provisions relating to the assessment and taxation of property, certain taxpayer notices, bond issuances, and councils of governments, and including applicability and retroactive applicability provisions.

Last Action

Subcommittee recommends passage.

1/29/2026

Committee Referrals

Ways and Means1/21/2026

Full Bill Text

No bill text available