Des Moines, Iowa (RI) — A property tax bill that would limit local property tax revenue growth to two percent a year has cleared the Iowa House.
Representative Carter Nordman of Dallas Center is the Republican who led debate.
The plan would exempt the first $15,000 of a home’s value from taxation and eliminate the homestead tax credit. State funding for that credit would be sent to public schools and reduce the property taxes Iowans pay to local school districts by about $150 million next year.
Nordman estimates Iowa homeowners will save $4 billion over the next six years if all of the bill’s provisions becomes law.
House Democrats offered an alternative that was rejected by Republicans, and several Democrats criticized the House GOP plan.
Representative Larry McBurney, a former member of the Urbandale City Council, says the bill will not lower Iowans’ property taxes.
Representative Adam Zabner of Iowa City says local governments will be able to get around the limit by raising fees and taking on more debt that must be repaid with property taxes.
Representative Ken Croken of Davenport says the two-percent cap threatens funding for police and fire departments.
Senate Republicans have taken a different approach to limiting local government budgets, and their property tax plan passed the Senate earlier this month with wide bipartisan support.
The Senate’s Republican leader says Iowa is one of the worst states for property tax burdens, and he’s optimistic lawmakers will find a compromise that provides relief to Iowans who are desperately asking for it.
KIWA Staff Photo
