Budget & Taxes (Local Government)

SF 493 prohibits local governments in Iowa (such as cities, counties, and school districts) from using tax revenue to hire lobbyists or pay government-affiliated groups that hire lobbyists. It specifically targets organizations like the Iowa League of Cities, the Iowa State Association of Counties, and the Iowa School Board Association, while excluding certain insurance or benefits groups. Violating this law constitutes a serious misdemeanor, punishable by fines up to $2,560 and potential job sanctions for the person involved. The bill aims to prevent the use of public tax funds for lobbying activities by local entities.

HF 600 limits property tax increases for Iowa cities and counties. It sets a cap of 102% of a government's average property tax rate over the previous five years for fiscal years starting July 1, 2026. To temporarily exceed this cap for one year within a five-year period, voters must approve with 60% support in a special election. The legislature must also get 60% approval to change these tax limits.

This bill sets new limits on property tax rates for Iowa counties and cities. It caps annual tax rates for general services based on a formula comparing current tax collections to property values, excluding increases from new construction or boundary changes. For counties and cities, rates cannot exceed a specific dollar amount per $1,000 of assessed value, with adjustments tied to prior years' actual tax collections and property value growth. The rules apply to fiscal years starting July 1, 2026, and directly affect local government budgeting for property taxes.