A bill for an act relating to property taxes by modifying the methodology for determining actual value of residential property, certain levy rates, and assessment limitations of certain classes of property, and including retroactive applicability provisions.

HF 418 modifies Iowa's property tax system for residential properties by limiting annual increases in assessed value. Starting in 2026, the actual value of most residential properties cannot exceed 100% of the prior year's value, unless the property had no prior assessment, underwent boundary changes, new construction, or structural improvements. This cap directly affects Iowa homeowners, particularly those in areas with rising property values, and includes retroactive application to prior assessment years. The bill also clarifies market value definitions and restricts assessors from using certain financial data when valuing commercial properties.