You Need to Know
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After a very fast start to the 2026 Legislative session, week two continued to keep the League team busy! As expected, the House GOP released their Property Tax Reform Bill, which shares similar themes with the Senate and Governor’s proposals reached last week with several notable departures. Excitingly, the House’s version
includes instructions for the Department of Management to consult with the League and Iowa State Association of Counties on revamping the Taxpayer Notice form sent to residents–in short, a League Priority piece of legislation is included in the House proposal!
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League Priority Legislation
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New Legislation of Interest
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HSB 596 | House Property Tax Proposal
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Property Tax Revenue Limitations - This bill creates a budget limitation of 102%, excluding the debt levy and new construction to better allow communities to grow.
Residential Property Tax Exemption - This bill creates a new residential exemption. After rollback, all residential parcels will receive an additional $25,000 exemption from value. This is retroactive to assessment years 2026 and beyond.
Property Tax Information Disclosure - The bill revamps the outdated document mailed to all property owners. This mailer will contain more information and was crafted by the League of Cities. The new mailer will be required for budget years beginning on or after July 1, 2027.
Council of Governments - The bill will require COGs to help local governments consolidate services and functions. They have the expertise to help save taxpayer money and streamline services.
Bonding -The bill will require that any bonds payable with property taxes must receive a 60% affirmative vote, beginning July 1, 2026.
Now that all three proposals are public, a deeper financial analysis of them is being completed, but a high-level comparison of important aspects* of the bills is below. Common to all three proposals is a revenue restriction/cap that excludes growth from new construction.
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SSB 3069 | Changes to Beneficiary and Use Requirements for Public Officer Insurance Policies
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Strikes the current requirements that, when a public officer obtains an insurance policy instead of a bond, the state must be the beneficiary of the policy and the policy must be for the benefit of those injured or sustaining loss, with the right of action in the name of the state. In short, it removes these specific beneficiaries and use requirements for public officer insurance policies obtained in lieu of a bond.
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SSB 3070 & HSB 618 | Regulation of Accessory Dwelling Units (ADUs)
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Seeking to clarify last year’s legislation, this bill requires cities and counties to allow at least one ADU on the same lot as a single-family residence in zoning districts where such residences are permitted, clarifies how ADU size is calculated (excluding unfinished basements), and revises the conditions under which ADUs can be restricted, particularly with respect to historic preservation areas. Additionally, the bill defines "size" for determining ADU limits as the gross living area of the primary dwelling, excluding garages, decks, and unheated porches.
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SSB 3058 | Revisions to Government Cemetery Regulations
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Redefines government cemetery regulation, specifying that certain oversight and care fund requirements do not apply to government cemeteries, and repealing some reporting and regulatory provisions.
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SSB 3054 | Prohibition of Utility Disconnections During Severe Weather
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This bill requires the Iowa Utilities Board to implement rules prohibiting public utilities from disconnecting residential gas or electricity service during periods of severe cold or hot weather, as defined by the Board's rules.
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HSB 589 | Competitive Information Protections for City Utilities
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Expands the authority of city utilities to hold closed sessions for discussing proprietary information or marketing and pricing strategies, allowing such sessions when disclosure could harm the competitive position of the utility or a third party. The bill also broadens the definition of "proprietary information" to include information related to electric generation capacity planning, energy markets or prices, and specifies that these provisions apply to the entirety of Code section 388.9.
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HSB 580 | Extension of Complaint Filing Period with the Iowa Public Information Board
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Extends the time allowed for filing a complaint with IPIB regarding open meetings open records violations from 60 to 90 days after the alleged violation occurs.
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Legislation that Advanced This Week
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SSB 1118 | Sidewalk Liability
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Align sidewalk liability for negligent maintenance to the adjacent property owner–consistent with current snow and ice provisions. This version also limits some of the fees cities may assess to the property owner to solely the labor and material costs.
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League Registered In Support
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SF 310 | Fire Sprinkler Prohibition
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Prohibits sprinkler systems from being required by either state or local building codes in townhome-style dwellings of 6 or fewer single-family dwelling units.
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League Registered Opposed
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SF 656 | Solid Waste Collection Opt-Out
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Allows residents to opt out of solid waste collection services for up to 5 months of a year while requiring an annual reapplication and max $5 administrative fee per month opted out.
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League Registered Undecided
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HF 2062 | Elimination of Property Owner Zoning Protests
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Eliminates zoning protests to require a supermajority council decision–limiting “NIMBY” style protests to city zoning decisions.
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League Registered Undecided
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SF 576 | Preemption of Contractor Performance Bonds in Private Projects
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Sets a $50,000 state-wide surety bond for contractors and preempts cities from requiring additional local surety bonds at the local level for non-public building projects.
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League Registered Undecided
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Legislation with Scheduled Subcommittees
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SSB 3058 | Repeal of Government Cemetery
Regulations
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HSB 585 | IPERS Technical Modernization Bill
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SF 2034 | Automated Vehicle Noise Enforcement System Prohibition
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HF 2074 | Permission to Create Entertainment Districts Allowing Public Alcohol Consumption
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HF 2041 | Local Law Enforcement Requirement to Cooperate with Federal ICE Agents
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HSB 580 | Timing of Filing Complaints with IPIB
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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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