You Need to Know |
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The Legislature continues to move at an energetic pace this session. On Thursday, a House Ways and Means subcommittee met to consider two of the three major property tax proposals currently under discussion, the House proposal and the Governor’s proposal. While both bills were advanced out of subcommittee, Republican lawmakers have been clear that neither proposal is expected to move forward in its entirety. Instead, the chambers anticipate working toward a combined package that incorporates select provisions from each bill.
The League registered as undecided on both proposals. We expressed strong appreciation for provisions aligned with League priorities, including improvements to the taxpayer notice to provide clearer information to Iowans. At the same time, we raised concerns about several components of the proposals, including the combined impact of a strict 2% revenue limitation with a new residential exemption, proposed restrictions on bonding authority, and, within the Governor’s proposal, a 10% cap on general-fund reserves and the administrative and fiscal impacts of converting homestead credits to a new exemption structure.
The League will continue working closely with lawmakers as these proposals evolve to ensure property-tax reform provides meaningful relief to taxpayers without undermining cities’ fiscal stability, service delivery, or long-term economic development capacity.
* As a note, the Legislature will not meet on Feb. 2, as lawmakers will be in-district for precinct caucuses. |
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For your reference, we have prepared a side-by-side comparison of the three property tax bills to help distinguish the individual provisions within each proposal. Download the PDF here. |
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League Priority Legislation
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Sidewalk liability legislation:
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SSB 3098 | Boundary Adjustments Petitions Between Cities by Property
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Establishes a new process for property owners seeking city boundary adjustments when their petitions are repeatedly denied by one city council. If a petition is denied three times within a year, and the land is undeveloped or unimproved, the petition is referred to the city development board, which must then facilitate an adjustment agreement between the cities. The bill excludes land under certain tax or assessment agreements and land sold at tax sale from this process. It also clarifies city agreements concerning property tax transitions and zoning changes as part of approved petitions. |
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SSB 3097 | National Electrical Code |
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Updates Iowa's adoption of the National Electrical Code to the 2023 edition, with specific state-level amendments and exceptions, prohibits local governments from enacting more restrictive electrical codes, and requires a cost analysis before adopting future updates. The amendments address topics such as ground-fault and arc-fault protection, receptacle requirements, and ceiling fan installations, and the bill sunsets upon the adoption of the 2026 edition of the National Electrical Code. |
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HSB 633 / SSB 3075 | Limitation of Public Funds Allowed to be Invested in a Public Trust |
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Limits local governments to invest only up to 25% of its public funds in a joint investment fund (IPAIT & ISJIT). Prohibits joint investment trusts from paying associations that do not provide direct investment management, administrative, custodial, or bona fide operational services. Requires written acknowledgement of insurance and safety.
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HF 2161 | Automatic License Plate Reader (APLRs) Regulation |
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Prohibits the use of license plate readers unless the local government has adopted an ordinance authorizing the use of readers. Limits access to images from plate readers after 24 hours without a search warrant, excluding certain exceptions. Requires a log be maintained of persons who access readers. Prohibits use of readers with facial recognition abilities. Prohibits plate readers from being placed at churches or other worship sites. |
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HSB 639 | Elections to Fill Vacancies in County and City Offices
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Requires that an appointment to a local elected office be for more than six months before the voters can petition for an election to fill the position. Allows an election for an office if the office holder gives an affirmation of an intent to resign after the next election but before the end of the term. Allows for the office to be on the ballot and for the term to start at the time of the resignation. |
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HSB 637 | Regulation and Penalties for Bicycles and Personal Mobility Devices |
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Expands and updates regulations for non-vehicular personal transportation in Iowa—including bicycles, low-speed electric bicycles, electric personal assistive mobility devices, and pedestrian conveyances—by outlining specific operational requirements, restrictions based on device type and location, and safety equipment mandates. The bill also increases penalties for violations, applies uniform rules and rights to all "devices," and clarifies local authority to regulate these transportation modes, ensuring consistency with the new statewide standards.
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Legislation That Advanced This Week |
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SF 580 | Crowdfunding Donations to Local Officials |
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League Registered in Support |
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SF 503 | Adding Instrumentalities (ILOC, ISAC) to Open Records Requirements
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League Registered Undecided |
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SSB 3058 | Government Cemeteries Exempt from Perpetual Care Regulations
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League Registered in Support |
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Legislation With Scheduled Subcommittees
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HF 2191 | City, County, and School Bond Election Dates |
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Moves regular school district and city elections from odd-numbered years to even-numbered years, aligning them with general elections. It also modifies restrictions and scheduling for special elections, including allowing bond elections on an additional date in June. Transitional provisions extend the terms of current officeholders to align with the new election schedule.
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Subcommittee scheduled for Feb. 3 at 12:45 p.m.
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SSB 3075 / HSB 633 | Limitation of Public Funds Allowed to be Invested in a Public Trust |
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Limits local governments to invest only up to 25% of its public funds in a joint investment fund (IPAIT & ISJIT). Prohibits joint investment trusts from paying associations that do not provide direct investment management, administrative, custodial, or bona fide operational services. Requires written acknowledgement of insurance and safety.
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Senate subcommittee scheduled for Feb. 3 at 11 a.m.
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House subcommittee scheduled for Feb. 3 at 4 p.m.
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HSB 626 | Auditor of State Fee Collection and Municipal Training |
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Increases the cap on total periodic examination fees the Auditor of State can collect from certain cities, raising the cap from $375,000 to $600,000 per fiscal year. It maintains the sliding scale for determining fees based on city expenditures, and continues the requirement that excess funds above the cap be used for municipal financial management training. The applicability date for these changes is fiscal years starting July 1, 2026.
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Subcommittee scheduled for Feb. 4 at noon.
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HF 2158 / SF 2111 | Statewide Resilience Planning
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Requires the DNR to create a state resilience plan, in coordination with other agencies. Establishes a goal of mitigating disasters and reducing risks for flooding.
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Senate subcommittee scheduled for Feb. 4 at noon.
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House subcommittee scheduled for Feb. 4 at 12:30 p.m.
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HF 2073 | Ballot Party Identification for Tax-Related Offices |
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HF 2191 | City and School Elections |
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Makes the date for school and city elections the same day as the November general election, and allows bond elections to be held on the June primary election date.
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Subcommittee scheduled for Feb. 4 at 12:45 p.m.
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Other Legislation of Interest |
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HF 2032 | Alternative Ratemaking for Water and Wastewater Infrastructure |
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Submitted by Iowa American Water, the bill creates a new legal framework for investor-owned water and wastewater utilities in Iowa to recover the costs of certain infrastructure improvements through a special 'system enhancement charge.' It authorizes an alternative ratemaking mechanism not bound by traditional methods, establishing definitions for eligible improvements and costs, and requiring commission approval of a multi-year plan.
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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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