HF 418 modifies Iowa's property tax system for residential properties by limiting annual increases in assessed value. Starting in 2026, the actual value of most residential properties cannot exceed 100% of the prior year's value, unless the property had no prior assessment, underwent boundary changes, new construction, or structural improvements. This cap directly affects Iowa homeowners, particularly those in areas with rising property values, and includes retroactive application to prior assessment years. The bill also clarifies market value definitions and restricts assessors from using certain financial data when valuing commercial properties.
SJR 6 is a constitutional amendment proposing to repeal Iowa’s natural resources and outdoor recreation trust fund (which funded parks, trails, and conservation) and replace it with a new property tax relief trust fund. The amendment would dedicate a portion of increased sales and use tax revenue (capped at 0.375% of taxable sales) to lower school district property tax levies uniformly across the state. This fund would replace revenue previously generated from the foundation property tax levy, directly reducing property taxes for homeowners and businesses that fund public schools. As a constitutional amendment, it requires voter approval after legislative passage.
This bill maintains the pre-development property tax assessment for land used in housing or commercial development starting January 1, 2020, or later. It prevents local assessors from changing a lot's tax classification until the property is improved with permanent construction, sold, or five years pass after the subdivision plat is recorded - whichever happens first. The rule applies to all development activities, including zoning changes, clearing lots, or installing utilities, but excludes special assessments. It takes effect immediately and applies retroactively to tax assessments beginning January 1, 2025.
HF 916 modifies Iowa's property tax credit for elderly residents by expanding eligibility. It removes the income requirement for seniors aged 65 and older who file claims, meaning they qualify regardless of household income (previously only those 70+ with income under 250% of the federal poverty level qualified). The bill directly affects Iowa residents aged 65+ who claim this property tax credit. It applies to claims filed on or after January 1, 2026, changing how the credit is calculated for this age group.
This bill creates a temporary partial property tax exemption for residential properties sold by the U.S. Department of Housing and Urban Development (HUD) to eligible homeowners in areas affected by declared disasters. It directly affects HUD-sold homes purchased by residents receiving Iowa's homestead tax credit, located in areas where the president or governor declared a major disaster or emergency. The exemption provides a phased reduction in property taxes over four years: 80% in the first year, 60% in the second, 40% in the third, and 20% in the fourth, after which the full tax applies. This policy change applies only to properties sold specifically to provide housing following a disaster.
SF 598 modifies Iowa property tax rules for land developed after January 1, 2020. It keeps such property taxed at its pre-development rate during construction or development activities (e.g., clearing land, installing utilities, or zoning changes) until a permanent structure is built or the property is sold. Property owners can opt out of this rule by notifying the assessor by March 1 each year, reverting to standard tax assessment. The law applies retroactively to tax assessments starting January 1, 2025, and does not affect taxes paid before that date.
SF 439 allows Iowa cities to levy a tax of up to 27 cents per $1,000 in property value to fund public libraries, directly affecting city residents who vote on the tax. The tax requires voter approval through a petition and election process: a majority must approve it at a regular city election, and it can be removed the same way. This bill reestablishes a library funding mechanism eliminated by a prior law (HF 718), restoring the specific tax rate and voter approval requirements that existed before that change. The tax would be part of a city's general fund levy, supporting library operations and services.
This bill (HSB 316) changes property tax rules for licensed commercial child care facilities in Iowa. It allows these facilities to be taxed at the same rate as residential property (instead of commercial property) for assessments starting in 2025, if they qualify and apply. To qualify, facilities must submit an application by July 1 each year with proof of licensing, and the county board must approve it by September 1. The state will cover the resulting tax loss with annual funding of $125 million, ensuring child care providers pay lower property taxes without increasing local government revenue.
HSB 325 allows Iowa counties, cities, school districts, and townships (defined as "governmental units") to formally combine tax-related services like levying, collecting, and property assessment through joint agreements. The bill creates a legal framework for these units to merge portions or all of their tax functions to achieve cost savings and operational efficiency. It specifically permits shared authority over tax collection and property valuation under Chapter 28E of Iowa law. The bill does not mandate combinations but provides a structured process for local governments to voluntarily collaborate.
This bill adjusts property tax rates for Iowa counties, directly affecting local governments and property owners. It sets new tax rate formulas for general and rural county services, requiring counties to maintain tax revenue at least 1.5% above the prior year’s actual collections (with exceptions for inflation). The rates are tied to the consumer price index, adjusting the maximum allowable tax increase based on inflation thresholds (e.g., 4-6% inflation triggers a 103% adjustment factor). These changes apply to fiscal years starting July 1, 2024, through 2028, with specific rules for 2026-2027 budget cycles.
