Governor Reynolds' Condition of the State Address
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In her much-anticipated Condition of the State speech, Governor Kim Reynolds began the 2025 legislative session calling for more tax relief for Iowans, including property taxes. However, she did not introduce legislation or specific plans to provide that relief, leaving the bulk of that work to the House and Senate members.
The Governor did announce that she will be assembling a Department of Government Efficiency (DOGE) taskforce which will be led by Emily Schmitt of Sukup Manufacturing, whose headquarters are in Sheffield. Following the theme of her administration over the past two years which saw the reduction from 37 to 16 state government agencies, this Iowa DOGE taskforce’s goal will be to find efficiencies in local government. In light of this, the League of Cities encourages all city officials to preemptively elevate existing successes of working efficiently as well as consider solutions to further streamline their work.
Another priority affecting cities from the Governor this session includes increasing the state’s funding for disaster relief via a $13.6 million budget appropriation for home rehabilitation programs and nuisance property/abandoned building funds to help localities remove buildings unsalvageable due to disasters. Additionally, the state government will establish a future revolving loan fund to assist communities to prepare for and rebuild from natural disasters.
Other priorities from the Governor’s address include the application for a federal waiver to include work requirements for Medicaid recipients, $1 million towards cancer research to address the rise in cancer rates in Iowa, and two cellphone-focused priorities calling for a hands-free driving bill to be passed by the legislature and a ban on cellphones during classroom instruction in schools. |
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Iowa Land Redevelopment Trust Act
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HF 28 & SF 45 establish the Iowa Land Redevelopment Trust Act, allowing municipalities to create land redevelopment trusts aimed at revitalizing dilapidated, abandoned, blighted, and tax-delinquent properties. The bill outlines the powers, governance, and financing mechanisms for these trusts, including a special tax sale process for acquiring eligible properties.
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Automatic Traffic Enforcement (ATE) Regulation
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HF 3 prohibits local authorities from contracting with third parties to collect fines for excessive speed violations detected by automated traffic enforcement systems and excludes such unpaid fines from qualifying debt for setoff procedures against public payments. The bill applies to contracts entered into or renewed after its effective date and to unpaid fines from that date forward.
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HF 50 requires local authorities to transfer excess revenues from automated traffic enforcement citations to the road use tax fund, while allowing them to retain only the necessary funds for operating and maintaining the enforcement systems. Additionally, it requires these authorities to report monthly to the Department of Transportation the money received and expenses related to the system.
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Property Tax Abatement for EMS Surviving Spouses
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Property Tax Abatement for Seniors and Veterans
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SF 29 proposes to change the homestead tax exemption for property owners aged 65 and older to a credit of at least $6,500 on actual taxes payable, while also increasing the military service tax exemption to the lesser of the property's actual value or an equivalent $4,000 credit. The bill applies retroactively to assessment years beginning on or after January 1, 2025.
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Forest & Fruit Tree Reservation Tax Exemption Reform
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Local EMS Agency Budget
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SF 26 designates local emergency management commissions as municipalities and certifying boards for budget purposes, requiring their budgets to be fully funded by approved options and prohibiting amendments by entities other than the commission. The bill applies to property tax budgets due and payable in fiscal years beginning on or after July 1, 2026.
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Cancellation of Tax Sale for Abandoned Properties
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SF 28 allows cities or counties to cancel the sale of property containing abandoned buildings to a tax sale certificate holder, requiring the county treasurer to refund the purchase money along with interest of 2 percent per month. This measure aims to facilitate the reclamation of abandoned properties by local governments.
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Local Primary Election Reform
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SSB 1013 requires candidates for city, school district, and merged area elections to be nominated through primary elections, transitioning from the current nonpartisan system, and repeals alternative nomination methods. The changes will take effect for elections held on or after January 1, 2027.
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Civil Service Reform
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SSB 1010 prohibits cities with a civil service commission from establishing citizen review boards for police conduct and modifies the procedures and standards for the removal, discharge, demotion, or suspension of civil service employees, including appeal processes and the awarding of attorney fees for prevailing employees. The bill also requires cities with populations over 50,000 to have between five and seven civil service commissioners.
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Entertainment Districts
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HF 38 authorizes cities to establish self-supported entertainment areas, allowing them to impose a surcharge on certain retail sales, including food alcoholic beverages, entertainment tickets, and lodging within those areas. The legislation outlines the requirements for the creation of such areas, the process for imposing the surcharge, and the use of the generated revenue.
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Hands-Free Driving
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SF 22 prohibits the use of electronic devices while driving, with exceptions for voice-activated or hands-free modes and certain emergency situations, and increases the penalty for violations from $45 to $100. These will be considered moving violations, impacting driver’s license suspensions and habitual offender status.
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You can view all editions of Legislative Link at iowaleague.org/resource/legislative-link.
Like our membership, the Iowa League of Cities is a non-partisan, service-oriented organization that does not participate in elections, make campaign contributions, or have a political action committee (PAC). |
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