A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.

This bill modifies property tax calculation rules for Iowa counties and cities, directly affecting local governments and property owners. It establishes a new formula where tax levies for general county services, rural county services, and city general funds cannot exceed 102% of the previous year's actual tax revenue, adjusted for new property valuations (like construction or annexation). The change applies to fiscal years starting July 1, 2026, and replaces previous fixed-rate thresholds. For example, a city's property tax rate must align with this 102% growth cap instead of a set dollar amount, ensuring tax increases mirror revenue growth while accounting for new property assessments.