Des Moines, Iowa — The Iowa Senate and House have approved competing property tax relief plans.
The Senate approach is focused on eliminating some property tax levies, consolidating others, and converting property tax credits for veterans and seniors to more lucrative exemptions. Senate Republicans say it would amount to a roughly 100 million dollars reduction in property taxes. Senator Dan Dawson, a Republican from Council Bluffs, is chairman of the Senate Ways and Means Committee that drafts tax policy.
The House approach would provide 200 million dollars in state money each year to replace local property taxes that go to public schools. Republican Representative Bobby Kaufmann of Wilton is chairman of the House Ways and Means Committee. He says lawmakers are listening to Iowans.
The House bill would also limit increases in property tax bills to three percent.
Dawson calls the Senate bill phase one of a long-term effort to reform an unchecked property tax system.
Both bills passed with nearly unanimous support from Republicans and Democrats. Just one Republican in the House and one Democrat in the Senate voted no. Democrats like Senator Pam Jochum say so far it’s been a bipartisan effort to find ways to simplify and streamline property taxes.
Representative Dave Jacoby, a Democrat from Coralville, says injecting certainty into the system is a priority.
Governor Reynolds has said her focus is on eventually eliminating the state income tax and she’s leaving it up to legislators to craft a property tax reduction plan.
