Bill Text: IA HF600 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act relating to local government finances by placing limitations on property tax levy rates.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-25 - Introduced, referred to Ways and Means. H.J. 425. [HF600 Detail]
Download: Iowa-2025-HF600-Introduced.html
House
File
600
-
Introduced
HOUSE
FILE
600
BY
HENDERSON
A
BILL
FOR
An
Act
relating
to
local
government
finances
by
placing
1
limitations
on
property
tax
levy
rates.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
331.425,
unnumbered
paragraph
1,
Code
1
2025,
is
amended
to
read
as
follows:
2
The
For
fiscal
years
beginning
before
July
1,
2026,
the
board
3
may
certify
an
addition
to
a
levy
in
excess
of
the
amounts
4
otherwise
permitted
under
sections
331.423
and
331.424
if
the
5
proposition
to
certify
an
addition
to
a
levy
has
been
submitted
6
at
a
special
levy
election
and
received
a
favorable
majority
of
7
the
votes
cast
on
the
proposition.
A
special
levy
election
is
8
subject
to
the
following:
9
Sec.
2.
Section
384.12,
subsection
4,
unnumbered
paragraph
10
1,
Code
2025,
is
amended
to
read
as
follows:
11
A
For
fiscal
years
beginning
before
July
1,
2026,
a
tax
that
12
exceeds
any
tax
levy
limit
within
this
chapter
,
provided
the
13
question
has
been
submitted
at
a
special
levy
election
and
14
received
a
simple
majority
of
the
votes
cast
on
the
proposition
15
to
authorize
the
enumerated
levy
limit
to
be
exceeded
for
the
16
proposed
budget
year.
17
Sec.
3.
NEW
SECTION
.
444.25
Property
tax
limitations
——
18
general
assembly
review.
19
1.
Notwithstanding
any
other
provision
of
law
to
the
20
contrary,
for
fiscal
years
beginning
on
or
after
July
1,
21
2026,
the
maximum
levy
rate
for
each
specific
levy
imposed
22
by
a
governmental
subdivision
shall
not
exceed
one
hundred
23
two
percent
of
the
average
levy
rate
per
one
thousand
dollars
24
imposed
by
the
governmental
subdivision
for
such
specific
levy
25
over
the
immediately
preceding
five
fiscal
years,
or
the
levy
26
rate
limitation
imposed
by
another
provision
of
law,
whichever
27
is
less.
28
2.
a.
The
maximum
levy
rate
in
subsection
1
may
be
exceeded
29
after
an
election
at
which
sixty
percent
of
those
voting
on
30
the
question
of
exceeding
the
maximum
levy
rate
in
subsection
31
1
vote
in
favor
of
the
question.
The
question
of
exceeding
32
the
levy
rate
may
be
submitted
at
a
special
election
under
33
section
39.2,
subsection
4,
or
the
general
election.
Notice
34
of
the
question
shall
be
provided
by
publication
at
least
35
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sixty
days
before
the
time
of
the
election
and
shall
identify
1
the
current
levy
rate
and
the
proposed
levy.
The
levy
rate
2
may
be
rescinded
in
the
same
manner
as
the
vote
to
exceed
the
3
levy
rate
in
this
subsection,
except
the
vote
in
favor
of
the
4
question
shall
be
fifty
percent.
5
b.
A
vote
in
favor
of
the
question
to
exceed
the
maximum
6
levy
rate
under
subsection
1
shall
allow
the
governmental
7
subdivision
to
exceed
the
levy
rate
limitation
for
one
fiscal
8
year
out
of
the
five
fiscal
years
immediately
following
the
9
approval
at
election,
and
after
such
time
the
maximum
levy
10
rate
shall
revert
to
the
determination
under
subsection
1,
but
11
excluding
the
fiscal
year
for
which
the
levy
was
increased
12
under
this
subsection.
13
3.
During
the
Ninety-second
General
Assembly
and
during
14
each
general
assembly
thereafter,
the
legislature
shall
review
15
this
section;
however,
an
enactment
to
change
this
section
16
shall
require
a
sixty
percent
vote
of
the
members
elected
to
17
each
house
of
the
general
assembly.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
local
government
finances
by
placing
22
limitations
on
property
tax
levy
rates.
23
The
bill
specifies
that
for
fiscal
years
beginning
on
or
24
after
July
1,
2026,
the
maximum
levy
rate
for
each
specific
25
levy
imposed
by
a
governmental
subdivision
shall
not
exceed
26
102
percent
of
the
average
levy
rate
per
$1,000
imposed
by
27
the
governmental
subdivision
for
such
specific
levy
over
the
28
immediately
preceding
five
fiscal
years,
or
the
levy
rate
29
limitation
imposed
by
another
provision
of
law,
whichever
is
30
less.
31
The
maximum
levy
rate
calculated
in
the
bill
may
be
exceeded
32
for
one
fiscal
year
during
a
five-fiscal-year
period
after
an
33
election
at
which
60
percent
of
those
voting
on
the
question
of
34
exceeding
the
maximum
levy
rate
vote
in
favor
of
the
increase.
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The
levy
rate
may
be
rescinded
in
the
same
manner
as
the
vote
to
1
exceed
the
levy
rate
in
the
bill,
except
the
vote
in
favor
of
2
the
question
shall
be
50
percent.
3
The
general
assembly
is
required
to
review
the
bill
4
beginning
with
the
next
general
assembly
(92nd).
However,
an
5
enactment
to
change
the
bill
requires
a
60
percent
vote
of
the
6
members
elected
to
each
house
of
the
general
assembly.
7
The
bill
also
amends
Code
sections
331.425
and
384.12
by
8
prohibiting
cities
and
counties
from
exceeding
certain
levy
9
limitations
or
levying
additional
taxes
following
approval
at
10
election
at
which
only
a
majority
approval
is
required.
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