SSB 3034 establishes new limits on local government property tax levies and reserve funds for budgets certified after July 1, 2027. It caps the maximum property tax levy at 102% of the prior year's total plus new valuation growth (from construction, boundary changes, etc.), and restricts unassigned general fund reserves to no more than 10% of budgeted expenditures. These rules apply to cities, counties, and other local governments (excluding school districts), with the Department of Management overseeing compliance. The bill also modifies audit requirements to verify adherence to these financial limits.
This bill amends Iowa's school infrastructure funding law to allow school districts to use SAVE Fund money for increased insurance costs tied to hiring individuals with professional permits to carry weapons under Iowa Code §724.6(1)(a)(3). It directly affects school districts by expanding the definition of "school infrastructure" to include these specific insurance expenses. The key mechanism is updating the statutory definition to explicitly cover such costs, making them eligible for reimbursement from the SAVE Fund. The bill does not create new requirements but clarifies existing fund usage for a defined category of insurance expenses.
SSB 3019 amends Iowa's real estate transfer tax law to expand exemptions from submitting a declaration of value when recording property transfers. It specifically exempts three new categories: (1) corporate/LLC mergers or reorganizations, (2) transfers between family entities and owners for no consideration (like shares/debt), and (3) trust asset distributions to beneficiaries without payment. This affects real estate sellers, buyers, and county recorders who process property transfers. The bill does not change tax rates but reduces paperwork for these specific exempt transactions.
SF 2007 increases the supplementary funding weight for Iowa school districts that share the operational functions of a school resource officer with a political subdivision (such as a city or county) for at least 20% of the school year. The bill raises the weight from two to five pupils per shared function, providing additional state funding to eligible districts to redirect resources toward student programming. This change applies to school budget years beginning on or after July 1, 2026, and directly affects school districts meeting the sharing criteria. The policy clarifies that districts may qualify for this increased funding even if the shared functions differ between the district and the political subdivision.
HB 642 establishes a 5% cap on indirect costs (overhead expenses like administration, utilities, and shared services) charged to state-funded grants in Iowa, effective July 1, 2026. It directly affects state departments awarding grants and grantees (including nonprofits, schools, and local governments) receiving state funds. The bill requires separate budgeting for direct costs (program-specific expenses) and indirect costs, mandates documentation of cost allocations, and prohibits reclassifying indirect costs as direct costs to bypass the cap. Grantees must maintain records for 10 years, and departments must monitor compliance to disallow excess costs or recover funds.
HF 2051 adds "school and career specialists" to the list of positions school districts can share with other entities (like other districts or political subdivisions) to qualify for extra state funding. It directly affects Iowa school districts that share these specialists for at least 20% of the school year. The key provision assigns each shared school and career specialist role a supplementary weighting equivalent to funding for two additional students, increasing resources for districts that collaborate on these services. This policy targets specialists who support at-risk students with career planning, life skills, and postsecondary transitions.
HF 2183 redirects excise taxes collected on aircraft sales from the state's general fund into the state aviation fund. Specifically, it changes the deposit of the 6% use tax on aircraft purchased for use in Iowa (subject to registration) from the general fund to the aviation fund. Moneys in the aviation fund are designated for airport engineering studies, construction or improvements, and marketing programs at public and commercial airports. This bill directly affects the allocation of revenue from aircraft sales, ensuring these funds support aviation infrastructure rather than general state spending.
This bill imposes a 15% annual tax on the endowment value exceeding $250 million for Iowa public universities (governed by the state board of regents) and accredited private colleges. The tax revenue from public institutions funds Iowa’s workforce grant incentive program, while private colleges’ tax revenue supports a new "high-wage and high-demand jobs" account within the tuition grants fund. This account supplements tuition grants for students enrolled in private colleges studying in fields identified as high-wage and high-demand by the workforce development board. The bill also limits management fees on endowments to 1% of endowment value annually.
SF 2085 regulates "event-driven contracts" - financial bets on specific events like sports outcomes or elections traded on digital markets. It requires these markets to obtain a $10 million initial permit and pay $100,000 annually to operate in Iowa. A 20% tax is imposed on the market's "adjusted revenues" (total fees minus payouts, weighted by Iowa trader participation), with tax revenue deposited into the state general fund. The bill also adjusts Iowa income tax rules to treat these contracts differently from federal tax treatment, excluding them from certain federal tax calculations. It explicitly excludes existing systems like horse racing wagering (Chapter 99D), fantasy sports (Chapter 99E), and sports betting (Chapter 99F).
HF 2011 imposes new taxes on alternative nicotine products (like nicotine pouches or gums) and vapor products (including e-cigarettes and vaping devices), with the revenue funding the new Iowa Cancer Research Fund. The bill directly affects businesses that manufacture, distribute, or sell these products by requiring them to pay additional taxes. The tax revenue will be deposited into a separate fund managed by the Department of Health and Human Services, which cannot be used for general state expenses. Funds from this account will only support cancer research in Iowa starting July 1, 2027, and must be distributed through a formal application process developed by the department.
