A bill for an act modifying property tax calculations, and including applicability provisions.

This bill modifies Iowa's property tax calculation system by introducing a cap on annual tax increases for qualified properties starting in fiscal year 2026. It limits tax increases for residential and agricultural properties to 103% of the previous year's tax (108% for commercial/industrial), unless improvements occurred during the base year. A "qualified parcel" must not have changed ownership, undergone new construction, or been subject to exemptions in the base year. The cap applies only to standard annual property taxes (excluding special assessments or bond payments) and aims to prevent sudden large tax jumps for eligible property owners.