Des Moines, Iowa (RI) — A bill that would significantly change the property tax system for Iowa homeowners has cleared the Senate.
Senator Dan Dawson, a Republican from Council Bluffs, calls it the first step toward a plan that can win approval in the Iowa House and be signed into law by Governor Reynolds.
The bill passed on a 41-4 vote. All but one Democrat voted for it, and Dawson says that affirms the plan is headed in the right direction.
Senator Tony Bisignano, a Democrat from Des Moines, says the bill’s not perfect, but it’s a good opener for negotiations.
The bill would cap city and county revenue growth between two and five percent, based on inflation.
It would replace Iowa’s system that limits how fast the taxable value of a home grows with a 50 percent homestead tax exemption.
Dawson says that exemption would start growing for Iowans once they reach the age of 60, and by the time a homeowner turns 100, they would pay no property tax at all.
The bill also calls for an immediate increase in the gas tax, followed by incremental gas tax increases in the future that are tied to inflation.
Dawson says cities and counties need that money to fix roads and bridges.
Dawson says without the kind of major overhaul outlined in the Senate’s bill, Iowa property taxes will remain among the top 10 highest in the country.
House Republicans have been working on their own property tax plan but have not yet indicated when it will come up for a vote in the House.
KIWA Staff Photo
