A bill for an act relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, urban renewal areas, establishing a program for certain first-time homebuyers, establishing a local government efficiency grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions.

This Iowa bill modifies property tax rules and budget limits for state and local governments, affecting cities, counties, and other public entities that levy property taxes. It establishes a new cap on general fund reserves, limiting unassigned funds to 35% of prior year expenditures starting in fiscal year 2027, and creates a new property tax levy limit that allows annual increases of up to 102% for existing property valuations. The legislation also updates audit requirements for local governments, clarifies how unliquidated obligations are recorded, and excludes school districts from certain reserve and levy limitation provisions.