Bill
Bill > HF2791
IA HF2791
IA HF2791A bill for an act permitting an exchange of the cash reserve levy for another local levy within the school budget for certain school districts to correct for an extreme circumstance and including effective date provisions.(Formerly HSB 781.)
summary
Introduced
04/29/2026
04/29/2026
In Committee
05/02/2026
05/02/2026
Crossed Over
05/02/2026
05/02/2026
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 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 bill allows certain school districts facing an extreme circumstance, specifically a reduction of $100 million or more in their taxable property value due to a correction for a single property during the 2025-2026 school budget year, to temporarily increase their cash reserve levy for the 2026-2027 school budget year. The cash reserve levy is a local property tax used to build up a fund for unexpected needs. This increase can go beyond normal limits, but only if the district simultaneously reduces other property tax levies, such as the management levy (which funds administrative costs), by an equal or greater amount. This ensures the district's total property tax revenue does not exceed the amount allowed by law, as determined by a specific calculation (Code section 24.2A). School districts wanting to make these adjustments must inform the department of management, which will then adjust the tax rates accordingly. The bill takes 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
Read first time, referred to Ways and Means. S.J. 972. (on 05/02/2026)
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=HF2791 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF2791.html |
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