Bill > HSB303

Introduced Session

This bill creates a foundation property tax reduction fund (fund) in the state treasury under the authority of the department of management (DOM). The fund shall consist of any appropriations made to the fund, and moneys transferred from other funds including transfers of interest or earnings from the Iowa economic emergency fund, the cash reserve fund, the taxpayer relief fund, and the general fund of the state. Commencing with the fiscal year beginning July 1, 2026, and each fiscal year thereafter, the balance of the fund on July 1 shall be appropriated to DOM to lower the foundation property tax levy rate under Code section 257.3(1)(a) for the school budget year beginning July 1 through payments to each school district to supplant funds that would have been collected as property taxes under Code section 257.3(1)(a). In Code chapters 425A (family farm tax credit) and 426 (agricultural land tax credit), the bill replaces references to the school foundation property tax levy rate ($5.40) with citations to the appropriate provision of the Code section establishing the foundation property tax rate. The bill specifies the fund shall be separate from the H.F. _____ general fund of the state and shall not be considered part of the general fund of the state except in determining the cash position of the state for payment of state obligations. The moneys in the fund at the close of the fiscal year do not revert and remain available for the purpose described in the bill. Interest or earnings on investments in the fund also do not revert to the general fund. Moneys in the fund may be used for cash flow purposes, provided that any moneys are returned to the fund by the end of each fiscal year.

Committee Categories

No sponsors listed

Other Sponsors (1)

Subcommittee: Kaufmann, Behn and Jacoby. H.J. 524. (on 03/05/2025)

Official Document