A bill for an act modifying the general and rural county services levy rate limitation for fiscal years beginning on or after July 1, 2026.

HF 235 modifies Iowa's property tax rate limits for general and rural county services starting July 1, 2026. It allows counties to increase their tax rate if the total property value for the new budget year is 101% or less of the current year's value, calculating the new rate as 103% of current tax dollars divided by the new property value. Each county may adjust its rate only once per fiscal year under this provision. This bill directly affects counties needing to set property tax rates for services like roads and emergency response. The change provides a limited pathway for small tax increases without exceeding existing rate caps.