- Both the House and Senate have passed their own property tax proposal out of their chamber with bipartisan support. The proposals are different and a negotiation between them will need to occur before anything is sent to the Governor. It is our understanding that this negotiation has yet to occur.
- There is one more week until the legislative per diem ends. When the legislature adjourns is still unknown, but it could be in the beginning or middle of May.
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Both chambers passed property tax reform legislation out of their respective chambers on Wednesday. The House proposal, HF 718, limits an increase of taxes paid on an individual parcel year over year rather than the entirety of the city budget, making it more narrow in its impact than the Senate proposal. The data does not exist to fully analyze the impacts of this legislation. Because of this gap in data, the League is asking the state to invest in computer systems that are able to provide a clearer picture of the changing valuations across the state at a parcel level. The bill also requires a transparency-based notice to be mailed to property owners with the specific change in taxes due. The transparency notice will outline where the revenue goes from property taxes.
Problematically, HF 718 includes a provision moving all elections for indebtedness to the first Tuesday after the first Monday in November. While likely intended to reduce the amount of indebtedness statewide, there are concerns that this increases the cost of bonding by preventing governments from taking advantage of opportunities in rates or materials costs. Additionally, limitations in Code of Iowa Chapter 47.6 would likely create more conflicts of bond votes.
As we move forward, reach out to your House members to assist them in understanding how this legislation impacts your community and ask them to strike the bond election date changes in the bill. It is also important that they continue to seek simplicity and transparency so that property taxpayers can understand the process. The Senate bill has provisions that are more problematic in these areas.
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- HF 718 was voted out of the House and sent to the Senate, where it will be considered. The previous iteration was HF 1.
- Division 1: Decreases the school’s foundation levy by $1 to $4.40 per thousand dollars of valuation.
- Division 2: Creates a cap on the growth of taxes due on an individual parcel, which is 3% for residential and agricultural parcels and 8% for industrial and commercial parcels.
- Growth attributable to Urban Renewal Area (URA), previously abated property, "net new" or improved property sits outside the above-described growth cap. This cap also does not apply to debt service levy or referendum approved indebtedness, voted levies, but does apply to Special Revenue Levies.
- The fiscal note highlights that since 2000, the statewide average growth of a residential property which would be limited to 3% under this legislation, was only 3.2% annually. Additionally, the average growth of a commercial property since 2001 was only 4%, well below the 8% cap of the bill. These figures are statewide and averages over more than 20 years, so individual impacts will vary widely.
- Division 3: Requires property tax collecting entities to direct the county treasurer to mail each property owner annual notices, which include the entity’s prior taxes levied, prior effective tax rate, proposed taxes levied, proposed tax rate, a reason for an increase of taxes if there is one, the individual parcel’s assessed value prior, the individual parcel’s current assessed value, amount of taxes due on the parcel prior, amount of taxes proposed on the parcel, and the entity’s share of those taxes proposed on the parcel.
- Division 4: Requires all referendums that approve a bond or indebtedness to take place on the first Tuesday following the first Monday in November. This section is largely problematic and the League will be requesting it to be dropped or significantly altered.
- While the League is registered in opposition to HF 718, it is a far more generous proposal than SF 569. Please contact your legislator and ask them to continue to work on HF 718 and reject SF 569.
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SF 569 | Property Tax Reform - Senate Proposal |
- SF 569 was voted out of the Senate and sent to the House, where it will be considered. Previous iterations include SSB 1124, SF 356 and SSB 1218.
- We have updated this webpage to describe this legislation and provide a formula to determine the impacts on your community. The League is registered in opposition to this legislation because of concerns related to unintended consequences, restrictions on future growth, and potential negative impacts on the viability of economic development tools.
- LSA has released this legislation’s fiscal note on SF 356, which highlights many of the League’s concerns.
- We encourage all League members to discuss with their House members the long-term consequences of the Senate proposal and how your city will struggle to make commitments from the fundamental restructuring of the property tax structure. The Iowa House will be where this legislation is considered next.
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SF 546 | Notice Publication Requirements |
- The original bill created a state-managed website, which allows local governments to post public notices at a flat rate of $5 per posting. This language is no longer in the legislation.
- Requires newspapers that accept public notices to post online within 48 hours of receiving a notice. This online posting satisfies statutory publication requirements. Allows publications for bonds to be in digital publications with nationwide circulation. Adds additional requirements to newspapers of record.
- This legislation was passed out of the Senate and sent to the House for consideration. Please contact your House members and encourage them to support SF 546.
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HF 143 | Prohibition of Ransomware Attacks |
- Creates a definition and prohibition of ransomware and malware attacks against cities and other governments.
- Passed out of the Senate and sent to the Governor for signature or veto.
- The League of Cities is registered in support.
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HF 603 | Volunteer Public Safety Tire Purchase |
- Authorizes volunteer responders to purchase one set of vehicle tires every three years from the Department of Administrative Services master contract for tires.
- Passed out of the Senate with an amendment and will need to be passed by the House with conforming language before being sent to the Governor.
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SF 570 | Emergency Management Agencies |
- An amendment to this legislation altered the original bill, which impacts the makeup of Emergency Management Commissions as well as the voting power of each commissioner. Adds additional restrictions on hiring and firing of staff based on this new makeup of the commission. Provides the Emergency Management Commissions with a capped levy independent of county supervisors.
- The League has been registered in support of previous versions based on feedback from our mayors. We will need new feedback on this amendment and will be analyzing the most recent language independently of the prior versions.
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HF 687 | MFPRSI Benefit Enhancement |
- Expands benefits under Chapter 411, Municipal Fire and Police Retirement System of Iowa (MFPRSI). This applies to the 49 cities that are required to participate in MFPRSI.
- Passed out of the House and sent to the Senate, where companion legislation sits on the unfinished business calendar and can be called up anytime.
- While some cities and city-related groups have moved to undecided on the legislation, the League remains registered in opposition.
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Legislation Filed Impacting Cities |
A list of all legislation filed this session can be found here.
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Subcommittees can be scheduled or canceled at any time, so the list below will only be accurate for a short time. An up-to-date list of subcommittees can be found here.
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April 22 - Fairfield Legislative Forum
Where: Fairfield Arts & Convention Center (200 North Main Street, Fairfield, IA 52556) and live streamed on the Fairfield Media Center's YouTube Channel
Time: 7:30 - 9 a.m.
Invited Participants: Sen. Adrian Dickey; Rep. Helena Hayes; Rep. Jeff Shipley
April 22 - Eldridge Listening Post
Where: Tasty Cafe (209 East Le Claire Road, Eldridge, IA 52748)
Time: 8 a.m. - 9 a.m.
Confirmed Participants: Rep. Mike Vondran
April 22 - Fort Dodge Eggs & Issues Legislative Forum
Where: Iowa Central Community College - Triton Cafe (One Triton Circle, Fort Dodge, IA 50501)
Time: 8:30 a.m. - 9:30 a.m.
Confirmed Participants: Rep. Ann Meyer
April 22 - Dedham Legislative Forum
Where: American Legion Post 20 (302 Main Street, Dedham, IA 51440)
Time: 10 - 11 a.m.
Confirmed Participants: Rep. Brian Best
April 22 - Des Moines Town Hall
Where: Northwest Community Center (5110 Franklin Avenue, Des Moines, IA 50310)
Time: 10:30 - 11:30 a.m.
Confirmed Participants: Senator Janet Petersen; Rep. Austin Baeth; and Rep. Sean Bagniewski
April 22 - Burlington Town Hall
Where: Burlington Public Library (210 Court Street, Burlington, IA 52601)
Time: 1 - 2 p.m.
Additional Information: This Town Hall is hosted by the Iowa House Democrats.
April 24 - Des Moines Caffeinated Politics
Where: Gateway Market Cafe (2002 Woodland Avenue, Des Moines, IA 50312)
Time: 8 - 9 a.m.
Confirmed Participants: Rep. Austin Baeth
April 28 - Ankeny Legislative Office Hours
Where: Main Street Cafe (2510 SW White Birch Drive, Ankeny, IA 50023)
Time: 9 - 10:30 a.m.
Confirmed Participants: Rep. Heather Matson
April 28 - Council Bluffs Legislative Roundtable
Where: Council Bluffs Public Library (400 Willow Avenue, Council Bluffs, IA 51501)
Time: 11:30 a.m. - 1 p.m.
Additional Information: This Town Hall is hosted by the Iowa House Democrats.
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Our mailing address is:
Iowa League of Cities
500 SW 7th St Ste 101
Des Moines, IA 50309-4506
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