Housing (Property Taxes)

This bill modifies Iowa's urban renewal tax rules to ensure that property taxes collected for emergency medical services are not used to pay off municipal debt or fund low-income housing projects. Under the new provisions, these specific emergency medical service taxes must be collected from all taxable property within the district without being diverted to special funds for urban renewal. The changes apply to property taxes due in fiscal years starting on or after July 1, 2027.

HF 92 modifies Iowa's urban renewal law by changing which property tax revenue funds urban renewal projects. It specifies that taxes for emergency medical services (under Chapter 422D) are excluded from the revenue pool used for urban renewal financing and low/moderate income housing assistance. The bill ensures that only certain property taxes - excluding those for emergency medical services, school levies, and other specific programs - are allocated to the municipality's special fund for urban renewal projects and housing. This change applies to property taxes due in fiscal years starting July 1, 2026.

SF 341 prohibits counties and cities with populations over 75,000 from regulating short-term rental properties. Specifically, it bans these jurisdictions from imposing permit requirements, license fees, or other restrictions on short-term rentals, and classifies such properties as residential for zoning purposes. The bill applies only to larger jurisdictions (populations >75,000), leaving smaller counties and cities unaffected. This directly affects property owners and operators in qualifying cities and counties by limiting local government oversight of short-term rentals. The bill does not create new regulations but restricts existing local authority over this housing type.