Certain Iowa school districts could shift taxes into cash reserves

Eligible school districts would be allowed to exceed the usual limit on property taxes collected for cash reserves. A correction to one property's taxable value during the school budget year beginning July 1, 2025, must have reduced the taxable value used to calculate that year's school property taxes by at least $100 million. Districts would have to cut other school property taxes by at least the amount added for cash reserves. Total school property tax dollars could not exceed the district's combined amount calculated under Iowa Code section 24.2A. Districts would have to notify the Iowa Department of Management, which would adjust their property tax rates. The permission would apply to the school budget year beginning July 1, 2026. The act would take effect upon enactment.