This bill sets a 2% annual growth rate for state school funding starting in the 2025 budget year (July 1, 2025), affecting Iowa school districts through their state aid calculations. It establishes two specific rates: a "state percent of growth" (2% for 2025) for general funding and a "categorical state percent of growth" (2% for 2025) for targeted programs like teacher pay supplements and early intervention. School districts receive property tax replacement payments based on these rates, calculated using a formula tied to enrollment and per-pupil funding adjustments. The rates for 2025 are fixed, but future rates will be set annually by the legislature.
HF 172 allows Iowa cities to levy specific voter-approved taxes for cultural, community, and infrastructure projects. It reinstates limits for taxes up to 13.5 cents per $1,000 valuation to support musical groups, symphony orchestras, or public libraries, and up to 81 cents per $1,000 for memorial buildings or monuments. Cities must submit these tax proposals to voters at regular or special elections, with details like tax rates and project specifics included in election notices. The bill recodifies these tax options after they were previously eliminated, maintaining the same voter approval requirements and rate limits. It directly affects city residents through property tax changes and local organizations receiving funding for cultural or public facilities.
This Iowa bill (HSB 114) modifies unemployment insurance tax calculations for employers. It reduces the percentage used to calculate taxable wages from 66.66% to 33.33% of the statewide average weekly wage, simplifies reciprocal wage rules with other states, and adjusts contribution rate tiers based on employer benefit ratios. Employers will pay lower taxes under the revised rate tables, with savings required to be used for employee salaries, benefits, or seasonal unemployment alternatives. The changes directly affect all Iowa employers contributing to the state's unemployment fund.
SF 97 amends Iowa law to expand the definition of "general county purpose" to include purchasing vehicles or vehicle equipment for specific county departments: sheriff's offices, county attorneys, jails, maintenance, conservation, and public health. This change means counties can acquire these vehicles without needing voter approval for bond issuance, which is typically required for general county purposes. The bill directly affects county governments by simplifying funding for essential equipment across multiple departments. It makes no other policy changes beyond this specific administrative adjustment to bond authorization rules.
HF 203 creates a tax credit allowing Iowa taxpayers to claim 25% of donations to a dedicated fund for a monument honoring basketball players Caitlin Clark and Lisa Bluder. The credit applies against individual income tax, corporate income tax, franchise tax, insurance premiums tax, and moneys and credits tax, with a total annual limit of $1 million and a maximum credit of 5% per donor. Donations of $30,000 or less are reserved for 10% of the total credit pool, and excess credits can be carried forward for up to five years. The monument fund, managed by the state authority, must be used solely for constructing the monument and expires in 2035.
HF 197 allows counties in Iowa to use supplemental taxes for the maintenance and operation of a county commission that provides services to veterans. It amends existing law to explicitly include "the maintenance and operation of a county commission of veteran affairs, including providing services to veterans" as a permissible purpose for supplemental levies. This means counties can now certify additional taxes specifically to fund these veteran affairs commissions when basic tax revenue is insufficient. The bill does not create new commissions but expands the existing process for funding county-level veteran services through supplemental levies.
HF 196 allows Iowa cities to levy a property tax of up to 27 cents per $1,000 of assessed value to fund public libraries, directly affecting cities with libraries and their property owners. The bill requires cities to seek voter approval via petition and election before implementing the tax, with the tax removable through the same process. It reestablishes a library tax eliminated by a prior bill (HF 718), restoring the specific funding mechanism while maintaining the same voter approval requirements that existed before HF 718. The tax is limited to library support and cannot be used for other city purposes.
SF 82 requires school districts in Iowa to hold a voter election for bonds issued in anticipation of revenue if the amount is $5 million or more, changing current law where elections were only required upon receiving a petition. It mandates that such bonds must receive approval from at least 60% of voters casting ballots on the issue, rather than a simple majority. The bill also specifies notice requirements for public hearings (10-20 days prior) and applies to bonds tied to the SAVE fund. This directly affects school districts planning large bond issuances, ensuring voter approval is mandatory for these significant financial decisions.
This bill changes how Iowa calculates minimum state funding for public school districts. It sets the minimum foundation aid at $300 per pupil, but this amount now specifically covers four teacher-related costs: salary supplements, professional development, early intervention, and teacher leadership programs. If a district's total state aid plus local property tax exceeds its total costs, the state will reduce the required property tax rate. The changes apply to school budgets starting July 1, 2026.
HF 235 modifies Iowa's property tax rate limits for general and rural county services starting July 1, 2026. It allows counties to increase their tax rate if the total property value for the new budget year is 101% or less of the current year's value, calculating the new rate as 103% of current tax dollars divided by the new property value. Each county may adjust its rate only once per fiscal year under this provision. This bill directly affects counties needing to set property tax rates for services like roads and emergency response. The change provides a limited pathway for small tax increases without exceeding existing rate caps.
