Bill > SF2228

Introduced Session

This bill relates to school district funding, including reducing the foundation property tax and repealing the education savings account program. DIVISION I. As part of Iowa’s system for funding school districts, Code section 257.3 requires each school district to levy each year, for the school general fund, a foundation property tax equal to $5.40 per $1,000 of assessed valuation on all taxable property in the district. The bill reduces the foundation property tax rate from $5.40 to $4.04. An exception to the $5.40 levy rate under current law is for recently reorganized and dissolved school districts. For such districts, the initial year requires a rate of $4.40, the first succeeding year requires a rate of $4.90, the second succeeding year requires a rate of $5.15, and for the third succeeding year and thereafter, a rate of $5.40. The bill reduces all of the applicable foundation property tax rates to correspond with the reduction in the foundation property tax. The bill provides for an adjustment of property tax credit calculations under Code chapters 425A (family farm tax credit) and 426 (agricultural land tax credit) for property taxes due and payable in the fiscal year beginning July 1, 2026, to account for the change to the property tax levy rate under Code section 257.3 in the bill. Division I takes effect upon enactment. The sections of division I that amend Code section 257.3 apply July 1, 2026, for school budget years beginning on or after that date. DIVISION II. The education savings account program is a program that provides funds to pupils who attend nonpublic schools to pay for qualified educational expenses including but not limited to tuition, tutoring or cognitive skill training fees, educational therapy costs, software expenses, and expenses related to course materials. For school years beginning on or after July 1, 2025, each student eligible to enroll in kindergarten through grade 12 is eligible for the education savings account program. Division II repeals the education savings account program and makes conforming changes. Division II takes effect upon enactment and applies July 1, 2026, for school budget years beginning on or after that date.

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Herman Quirmbach (D)*, 

Subcommittee: Sinclair, Kraayenbrink, and Quirmbach. S.J. 244. (on 02/10/2026)

Official Document