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HF 2764

A bill for an act relating to school district budgeting by modifying provisions relating to proposed property tax amounts.

2025-2026 Regular Session

The bill requires a separate public hearing on proposed property taxes, allows only reductions after testimony, and ties early dollar amounts to prior-year growth if current state

Subcommittee: Koelker, Bisignano, and Rowley.
#propertytaxes #schooldistricts #taxation #schoolbudgets
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WeVote Research Nonpartisan
Bill Summary · HF 2764

Summary of HF 2764 (2025-2026) — Iowa

Purpose and Intent

HF 2764 relates to how Iowa school districts and other political subdivisions budget and present proposed property tax amounts. The bill modifies the language and procedures surrounding (a) the calculation and certification of proposed property tax dollars and rates, and (b) the timing and conduct of public hearings on proposed property tax amounts. The overarching aim appears to increase transparency and establish clearer procedural controls around how proposed property tax levels are set and reviewed before adoption.

Key Provisions

1) Definition and constraints on proposed property tax dollars and tax rate (Section 24.2A(2)(b)(1) subparagraph (3))

  • The bill amends the language to require that the combined amount of proposed property tax dollars to be certified for all of a political subdivision’s levies in the budget year, along with the proposed combined property tax rate per $1,000 of assessed value for those levies, be considered together.
  • For school districts, if the state percent of growth and the categorical state percent of growth for the applicable school budget year have not been established by law by March 5, the proposed property tax dollar amount cannot exceed the dollar amounts calculated using growth percents equal to those applicable to the immediately preceding school budget year.
  • In effect, this creates a temporary cap mechanism tied to prior-year growth presumptions when current-year state growth data are not yet established.

2) Public hearing timing and structure (Section 24.2A(4)(a))

  • Each political subdivision must set a time and place for a public hearing on the proposed property tax amount for the budget year, and must include information from the subdivision’s statements as required under subsection 2.
  • The proposed property tax hearing must be held on a date on or after March 20 of the budget year immediately preceding the budget year for which the tax is being proposed.
  • The hearing is dedicated to the property tax proposal and must be separate from any other budget-related meetings or business. Testimony is open to residents or property owners.

3) Public hearing conduct and subsequent action (Section 24.2A(4)(a) cont.)

  • At the hearing, the governing body may receive oral or written testimony from residents or property owners.
  • The hearing must be separate from other budget discussions or meetings not related to the proposed property tax amounts.
  • After all testimony is received and considered, the governing body may decrease, but not increase, the proposed property tax amount to be included in the budget.

Who/What is Affected

  • Primary: Political subdivisions, including school districts, within Iowa that prepare annual budgets and set property tax levies.
  • Affected Parties: Property owners and residents who participate in public hearings, school districts’ budgeting processes, and district-level governing bodies.

Procedural and Timeline Aspects

  • Public hearing timing: Must occur on or after March 20 of the budget year prior to the year for which the tax is proposed.
  • March 5 deadline: If state growth data are not yet established by March 5, the proposed property tax dollar amount must not exceed prior-year growth-based dollar amounts.
  • Hearing separation: The property tax hearing is required to be a distinct, standalone meeting, separate from other budget discussions and related business.
  • Post-hearing action: The governing body can only reduce the proposed property tax amount after considering testimony; increases are not allowed at this stage.

Potential Implications

  • Increased transparency and public participation in property tax budgeting through a dedicated hearing.
  • A guardrail on proposed property tax levels in years when state growth data are not yet established, effectively anchoring proposals to prior-year growth percentages.
  • Potentially slower or more cautious adjustments to tax levies in the lead-up to adopting the budget, given the constraint that increases are not permitted after the hearing.

If you’d like, I can provide a side-by-side comparison with current law or outline potential fiscal impacts for a hypothetical school district.

Compiled from official sources — confirm details with the bill’s official record.

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