A bill for an act placing assessment limitations for property tax purposes on commercial child care facilities, and including effective date, applicability, and retroactive applicability provisions.

This bill (HSB 316) changes property tax rules for licensed commercial child care facilities in Iowa. It allows these facilities to be taxed at the same rate as residential property (instead of commercial property) for assessments starting in 2025, if they qualify and apply. To qualify, facilities must submit an application by July 1 each year with proof of licensing, and the county board must approve it by September 1. The state will cover the resulting tax loss with annual funding of $125 million, ensuring child care providers pay lower property taxes without increasing local government revenue.