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Bill > HSB781
IA HSB781
IA HSB781A bill for an act permitting an increase in the cash reserve levy for certain school districts and including effective date provisions.(See HF 2791.)
summary
Introduced
04/23/2026
04/23/2026
In Committee
04/23/2026
04/23/2026
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill provides that for the school budget year beginning July 1, 2026, a school district for which the taxable value H.F. _____ used to calculate school district property taxes for the school budget year beginning July 1, 2025, was reduced by $100 million or more due to a correction to the taxable value of a single property within the school district made during the school budget year beginning July 1, 2025, may increase the school district’s proposed cash reserve levy under Code section 298.10 to an amount that exceeds the limitations of Code section 298.10 if the district reduces one or more property tax levies of the school district, including the district’s management levy under Code section 298.4, by an amount equal to or greater than the amount of the increase to the cash reserve levy so that the school district still complies with the total proposed property tax dollars under Code section 24.2A. A school district that wishes to adjust its levy rates pursuant to the bill shall notify the department of management in a manner prescribed by the department. The department shall adjust the school district’s property tax levy rates as necessary to implement the bill. The bill takes effect upon enactment.
AI Summary
This Study Bill allows certain school districts, specifically those whose property tax base was significantly reduced (by $100 million or more) in the 2025 budget year due to a correction on a single property's value, to temporarily increase their cash reserve levy for the 2026 budget year. The cash reserve levy is a portion of property taxes set aside for unexpected expenses. To implement this increase, the school district must simultaneously decrease other property tax levies, such as the management levy (which funds administrative costs), by an amount equal to or greater than the cash reserve increase, ensuring the total property tax collected remains within the established limits. The Department of Management will oversee these adjustments and will be notified by any district wishing to use this provision, with the bill taking effect immediately upon being signed into law.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means (House)
Last Action
Committee report approving bill, renumbered as HF 2791. (on 04/29/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HSB781 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HSB781.html |
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