Iowa SF2228 reduces the foundation property tax and repeals the education savings account program.

Iowa SF2228 modifies school district funding by reducing the foundation property tax and eliminating the education savings account program. The bill adjusts the property tax credit calculations for agricultural lands and family farms, affecting school districts with tax levies exceeding $5.40 per $1,000 of assessed value. It also reduces the foundation property tax rate from $5.40 to $4.04 per $1,000 of assessed valuation, with exceptions for reorganized and dissolved school districts. The changes take effect upon enactment and apply to school budget years beginning on or after July 1, 2026.

Iowa SF2228 reduces the foundation property tax and repeals the education savings account program.

Iowa SF2228 modifies school district funding by reducing the foundation property tax and eliminating the education savings account program. The bill adjusts the property tax credit calculations for agricultural lands and family farms, affecting school districts with tax levies exceeding $5.40 per $1,000 of assessed value. It also reduces the foundation property tax rate from $5.40 to $4.04 per $1,000 of assessed valuation, with exceptions for reorganized and dissolved school districts. The changes take effect upon enactment and apply to school budget years beginning on or after July 1, 2026.